HDSE Report on Latvia (1997)

Mrs Feliciana Rajevska

Table of contents:
I - CONTEXT
1) Country facts
1.1. Privatisation and Restitution.
1.2. Foreign investments
2) Income/expenditure poverty
2.1. Groups over-represented in these categories
3) Perceptions of poverty and exclusion
3.1. As demonstrated through public surveys
3.2. In government reports
3.3. Main viewpoint in the academic world
3.4. Main viewpoint in public/media discussion
4) Policy actors and the policy environment
II - HEALTH AND HEALTH CARE IN LATVIA
1) Historical legacy of health care policy in Latvia
2) Legal framework
3) Political framework
4) Health care reforms
5) Exclusions
5.1. Health status
5.2. Prevention programs to attack risk factors for adult health are poorly developed.
5.3. Access to, and utilisation of, health services
6) Explanation and comment (evaluation of policies)
III - HOUSING AND HOMELESSNESS
1) Introduction
Section 1. The structure of the housing stock according to the type of tenure.
Section 2 and section 3.
Section 4.Can people who are not nationals of your country but are legally resident access
Section 5. Groups at higher risk of becoming and remaining homeless than other population sub-groups in Latvia.
Section 6. Vagrancy.
Section 7. An official domicile or proof of address as requirements for access depend on kind of services.
Section 8. Institutions for homeless people
Section 10
Section 11
IV - EMPLOYMENT AND UNEMPLOYMENT
Section 1. Women and employment
Section 2. Foreigners and ethnic minorities
Section 3. Pensioners
Section 4. Insertion for the young unemployed
Section 5. Long-term unemployed
Section 6. Child labour.
Section 7. Role of Labour Office
Section 8. Role of the Trade Unions
Section 9. Labour conditions
Section 10. Right to a Minimum Wage
Section 11. Right to unemployment benefits
Section 12. Right to a guaranteed minimum income
V - EDUCATION
1) Illiteracy and lack of basic educational qualifications
2) School drop-outs
4) Compulsory schooling
5) Exclusion from school
6) Non-formal education
7) Education of children and young people at risk of social exclusion.
8) Educational qualifications gained in other countries.
9) Vocational training
10) Other measures to combat social exclusion
11) Pre-school education
VI - SOCIAL PROTECTION
1) Legacy of Past in Social Sphere in Latvia
2) Social Welfare Reform
Section 1. General data
1) SOCIAL PROTECTION SYSTEM
2) FINANCING
3) RISKS COVERED.
2) BENEFITS
Different types of benefits.
Social Assistance: are there minimum incomes guaranteed by the state?
Who is entitled to these minimum incomes?
VII - CONCLUSIONS: SOCIAL EXCLUSION IN LATVIA
APPENDIX 1
APPENDIX 2.
LITERATURE

I - CONTEXT 

1) Country facts

Land area of Latvia is 64.600 sq.km. At the beginning of 1996 Latvia has 2.500.4 thsds resident population, on which 1725.3 (69%) urban and 775.1 (31%) rural.

Capital of Latvia Riga has 826.1 thsds, it means, that one third of population is living in Riga.

Gender distribution in 1995 (%): males - 46, females - 54%.

According to the 1989 census, the educational attainment of women was as high as that of men and even higher: on average, 10.7 years for women and 10.5 for men for the age group 20-64, and 12.4 and 11.8 academic years, respectively, for the age group 25-34. Persons with higher and secondary education per 1000 inhabitants aged 15 and over were 604 in 1989.

Latvia is a distinctly multi-ethnic and multicultural society. The ethnic mix of the population today is largely the result of massive post-war immigration, which resulted in a decline in the share of ethnic Latvians from 77% in 1935 to 52% in 1989. Since then, the share of Latvians has grown because of differential birth-rates and outmigration. Ethnic distribution in 1995 (%) was as following Latvians -55.1, Russians - 32.6.(Look table 1.1). Many non-Latvians do not speak the Latvian language due to the legacy of Soviet Russification policy. Though high rates of ethnic intermarriage and the renewal of the minority cultural infrastructure attest to considerable tolerance, important policy tasks included resolving issues related to the large number of non-citizens (about 30% of whole population).

In October 1991 citizenship was restored to those who were citizens of pre-war Latvia and their descendendants. According to the Law on Citizenship adopted in summer 1994, a large portion of the remaining inhabitants of Latvia may qualify for citizenship through naturalisation. Latvian naturalisation department launched a naturalisation process in February 1995. Until the end of 1996 only 4.000 persons became citizens through naturalisation procedure, approving Latvian language proficiency, knowledge of Latvia's history, culture and Constitution. Among them 3.5 thousands were spouses of citizens, who were married more than 10 years.

Multi ethnicity is reflected in different religious confessions too. At the beginning of 1996 Latvia had 832 registered congregations; of the largest congregations 297 were Lutheran, 196 were Roman Catholic, 118 were Othodox, 77 were Baptist, 55 were old Believers, followed by 33 Adventist congregations, 5 Jewish synagogues and 43 other assorted congregations.

The transformation to market economy in Latvia was attended by a serious economic crisis: gross domestic product per capita decreased by more than a half from 1990 to 1993. The initial stage of economic reform in Latvia in 1991-1993 witnessed an enormous drop in manufacturing, instability in the financial system, rapid price rises and the threat of hyper-inflation. (Table 1.1)

In 1995 the produced GDP on the average per capita was 50% less than in 1990 and constituted 3249 USD at PPP. Such figures are provided by the Central Statistical Bureau of Latvia by extrapolating 1993 PPP data. Purchasing power parity (PPP) is defined as the number of units of a country’s currency required to buy the same amounts of goods and services in the domestic market as 1 dollar would buy in the United States. (1996 Statistical Yearbook of Latvia, p.279). In 1995 development of national economy of Latvia was strongly affected by the commercial bank crisis. The largest commercial bank “Banka Baltija” became bankrupt and approximately 10% of population lost their money. Because in mid-1995 the deposits of private individuals at Banka Baltija made up approximately 40% of individual deposits in all commercial banks in Latvia. The influence of the banking crisis on the national economy continued to be felt in 1996 too. But 1996 became first year when occurred real increase in GDP for 2%.

One of the most important achievements of economic reforms of Latvia is decrease of inflation. Government and Bank of Latvia implementing a tight fiscal and monetary policy managed to decrease consumer price inflation from the level close to hyper inflation -958.6% (calculating against December of the preceding year) in 1992 to 23.1 in 1995 and 13.5% in 1996).

1.1. Privatisation and Restitution.

Existence of private property as an institutions is secured in the state. Main changes in employed structure during transition years were as following: Share of persons employed in state enterprises, institutions, organisations (including budget-financed organisations) among all employed persons reduced from 81% in 1990 to 42% in 1994 and 38% in 1996. Share of persons employed in agricultural statutory companies reduced from 11% to 5%. Share of persons employed in entreneurial companies increased from 6% in 1990 to 31% in 1994. Share of persons employed in private enterprises (including peasant farms, household plots, private auxiliary farms and self-employed increased from 2% in 1990 to 22% in 1994. (Labour in Latvia, p.19) The share of people employed in the private sector at the beginning of 1996 reached 62% of total employment and more than a half of GDP was produced by the private sector in 1995.

Privatisation has allowed to cardinal change property structure in agriculture. The bulk of trading, public catering and household service companies has been privatised. Privatisation concept of state companies was created slowly and many times reviewed.

There is special interest to look in the rules of privatisation through certificates. Bill about certificates passed through parliament in 1992. All legislation, dealing with certificates was very complicated from the beginning and in the same time not finished for long time. First law on this issue allowed only to receive certificates. The rest legislative body left for government and time. Until half of 1994 all property was sailed and bought only on cash. The laws about rules of privatisation were changed many times. As result almost nothing left from the idea of first law. The objects of privatisation for certificates were not declared. In conditions of budget deficit government had great interest for cash money and certificates created only headache for it. According estimates made by European Bank of Reconstruction and Development on situation at the end of 1994, Latvia demonstrates high scores in areas like price liberalisation (3), trade liberalisation (4) and financial reforms (3), but lags behind its neighbouring countries Estonia and Lithuania in privatisation of large enterprises (2), privatisation of small enterprises (3) and restructuring of enterprises (2) in comparison with Estonia, coming together to overall economic reform coefficient of only 2.83, whereas in Lithuania this coefficient was 3.00 and in Estonia it was 3.33 (East European Constitutional Review, vol.5, n.1, 1996, p.48). In respect of social sector it undoubtedly means that an average individual has benefited from the economic reforms significantly less than in the neighbouring countries.

In 1994 Government changed law about certificates and declared, that the main goal of certificates is to involve in privatisation of state property all groups of population. State declared, that it has enough property for all certificates. The process of wide using certificates for privatisation flats and state companies really started only in 1996.

The 1996 marked a sharp turning point: Cabinet of Ministers handed over for privatisation 318 state enterprises, companies and their structural units. The government has handed over to Latvian Privatisation Agency(created in 1994) almost all state property units planned for privatisation. This means that from the point of view of decision making privatisation has almost been completed. It is planned for the time being to retain approximately 160 units in the state ownership: prevalently companies of infrastructure and social designation as well as some strategically important for the state companies such as Latvijas Dzelzcels (Latvian Railway) and Latvijas Pasts (Latvian Post).

The biggest Latvian privatisation deal in 1996 was the sale of the controlling block of shares in the Riga Transport Fleet. The Latvian Shipping Company is the 19th largest shipping company in the world.

In legislation especially we would like to pay attention to the restitution. According to the Laws of Restitution land, housing, enterprises and other kinds of the property have to be returned to their former legal owners (dating back to 1940, before Latvia's annexation by the Soviet Union) or to their direct or even indirect descendants, if they can prove their rights. If their property was destroyed, they can receive compensation for it. The property, according Latvia’s legislation should be return to everybody, who can prove their right despite of their present citizenship and present staying country. Law does not demand from renewed owner of building, factories and land to return to Latvia. Because all sum of compensation should be paid from the budget of present generation, such extremely liberal approach to restitution legislation does create some social justice problems. From historical justice point of view such law is fair. It is sensible and fair to return property to former owners or to their children who would like to return to Latvia. But such deep restitution, which Latvia has experienced, is not fair to generations born after second world war and living constantly in Latvia. The implementation of it has created a lot of conflicts in society.

1.2. Foreign investments

Latvia takes the middle position between countries of Central and Eastern Europe as to the attraction of direct foreign investments per capita. According to statistical data provided by the International Monetary Fund and the World Bank, the level of foreign investment in Latvia per capita for the period 1992-1994 was 55 USD. (Latvia, 1996, p.43). According to data of official statistics as of end 1995 the amount of foreign investments constituted Ls 274.2 million or about 500 million USD(or 200 USD per capita). The majority of investments made up to 1997 were rather small.

Latvia made crucial improvements in late 1996 in creating a more hospitable environment for direct foreign investments. The former legislation, according to which only a citizen of Latvia and only a legal body, registered in Latvia (but not a foreigner or resident) could be the owner of land, was changed. In the end of 1996 Latvia has received high status in credit ratings, which are important indicators of confidence in the economy and determine the cost of borrowing. The ratings reflect the perceived risk of default by the borrower on its debts. Indirectly, it is also a general indicator of a stable investment climate. Standard & Poor justified the high rating with Latvia’s success in reining in the budget deficit (to less than 1% of GDP), its comparatively healthy monetary policy - resulting in a low 13% inflation rate in 1996. Other positive factors reviewed were the large share of GDP generated by the private sector (60%), the early stage privatisation of large-scale state enterprises, a low fiscal debt ratio (18% of GDP) and low foreign debt (16% of the export volume). Latvia has shown positive (macroeconomic) trends during the year 1996.

The level of officially registered unemployment in the 1996 has stabilised at about 7% of the number of economically active population (7.3% in February, 1997). Hidden unemployment also exist. It is expected that upon acceleration of privatisation and increase of production efficiency the level of unemployment will continue increasing.

* Income distribution

During 1992 the standards of living of population has been drastically reduced. In the 4-th quarter of 1992, 3/4 of Latvia's population had an income below the crisis minimum and 83% - an income not exceeding the complete minimum consumer basket of goods and services. In 1990 and 1991 their number represented 18% and 35% respectively. (Latvia in figures 1992. Collection of Statistical Data. Riga, 1993, p.42).

A certain view on the level of living of population in Latvia is offered by household budget studies carried out by the Central Statistical Bureau. Starting with the 4th quarter of 1995 such studies have been realised according to a new program therefore the obtained data in majority of case are incomparable with the results of similar studies of the preceding years. At present the household budget survey is the only source of information about the income and consumption expenditure pattern in households with different standards of living. (Look tables 1.9 and 1.10) The average size of household is 2.4 persons. Because of the low income level and lack of savings expenditure of households did not differ much from incomes. 94% of household expenditure was constituted by consumption expenditure. The specific weight of consumption expenditure in rural areas was somewhat bigger and reached 96%. Still a rather high specific weight in consumption expenditure belongs to food - 51%. The second biggest household expenditure item is costs of maintenance of flats. The share of such expenditure reaches 13% (16% - in cities and 8% in rural areas).

The increase in monetary incomes has been accompanied by growing income differentiation. Data from a survey of 1300 household budgets and expenditures (the survey did not include the poorest families, such as the homeless and vagrants, or the richest) provide some insight to social stratification. Each of the 1300 surveyed households was classified in ascending order into deciles, with each decile comprising 10% of the respondents whose income falls between two deciles. The ratio of the average income per family member of families ranked in the tenth decile (the richest) to that families ranked in the first decile (the poorest) was 5.6 in 1993 and 6.9 a year later. It means, that the distance between the rich and the poor increased substantially in a one year period. (Latvia. 1995, p.54).

Calculations of Latvia's Gini coefficient suggest that a rapid growth in inequality has taken place. Based on household budget survey data, the figure for Latvia was 0.40 in 1993 and 0.42 in 1994. (Latvia, 1996, p.26). Large families encounter the greatest difficulties in making ends meet. The average number of family members in the households ranked in the first decile was 4.0 in 1994, while that in households ranked in the 10th decile was 1.7. Family size is to a large extent determined by the number of children, and a decline in the birth rate has taken place: from 16.1 in 1986 to 14.2 in 1990 and 8.6 in 1995 per 1.000 inhabitants.

* Level of minimum wage, minimum subsistence income, social minimum

There are official data about distribution of employees in state and local government enterprises and institutions by average monthly gross wages and salaries in November 1995 (including entrepreneurial companies with state or local government participation, excluding part-time employees and apprentices). Minimal wage in that time was 28 Ls. Number of employees, which gross wages were less than 28 Ls were 1.9 thsds or 0.5%, but number of those who received 28-30 Ls was 13.5 thsds or 3.7%.

In the 4th quarter of 1995 the disposable income of households per household member was 49.34 lats per month (according to household budget survey data). According to public opinion polls on the material position of households, in the 4th quarter of 1995, 60% of households could hardly make their end’s meet, 9% of respondents had started to draw on their savings, 20% had run into debts, while only 6% admitted that they had enough money to live on and even had made some savings, and 5% of households could not assess their material position. (1996. Statistical Yearbook of Latvia, p.86)

2) Income/expenditure poverty

In the case of Latvia the subsistence minimum as an equivalent to a poverty line was determined using the objective approach. To fix the subsistence minimum in Latvia, the cost of a normative food basket, sufficient to meet nutritional needs, was calculated and the cost of non-food items, i.e., clothing, rent, furniture, fuel and light, transportation, services, etc was added. The subsistence minimum in Latvia was introduced officially to guarantee survival for the whole population rather than to determine the number of people below the fixed minimum. The idea was that the minimum salary must keep pace with the subsistence minimum, but the minimum pension was fixed as 80% of a minimum salary.

The subsistence minimum was calculated by the government (Ministry of Social Welfare), using the minimum (government-fixed) prices of food and non-food stuffs. It was stated that calculations were to be made once every three months, and salaries were not to fall behind the increase in prices by more than 7% during the period. The increase in salaries would take place in the next quarter and it would be based on the increase of prices in the previous quarter.

As an alternative to the official subsistence minimum, calculations have also been made by the Latvian State Committee for Statistics and a group of experts of the Free Trade Union Federation of Latvia, taking into account the current prices of various goods and services.

Complete minimum consumer basket of goods and services consists of the amounts of goods and services that meet the needs of the minimum level of living standards accepted by the society. The content of the basket was approved by the April 8, 1991 Decision No.95 of the Council of Ministers. The value of this basket is calculated by the Central Statistical Bureau on a monthly basis.

Crisis minimum consumer basket of goods and services was introduced in April 1992 and was aimed to guarantee only physical survival. We can consider it as absolute poverty line. It consisted of the amount of goods and services that meet the needs of the lowest level of living standards and provides for the most pressing daily necessities under the economic crisis. This basket was calculated by the Ministry of Welfare. Different from the complete minimum consumer basket of goods and services this basket did not include durable goods. The content of this basket was determined by experts. Income and social taxes are not included in the calculation of the subsistence level.

But in reality the minimum salary is less than the crisis subsistence minimum. Such trend does exist during some years. It means that those whose income is equivalent to the minimum salary cannot pay for the food estimated in the minimum consumption basket, as the expenditure on food items constitutes 50-62% of the total expenditure.

In Latvia’s situation poverty is intimately linked with the level of salaries and wages and earning opportunities and not only with unemployment, retirement and other factors that usually cause the deterioration of an individual's or household's financial situation.

In the period from 1989 to 1994, average daily per capita caloric intake decreased by 12 percent from 2618 to 2293 calories. The main reason for the decrease was the decline in real incomes. As a result, the share of household budget expenditures going towards purchases of food rose from 32 to 52 % over that period.(Latvia. HDR, 1996, p.25)

The NORBALT survey revealed, that only 23 % of all households have more providers (or producers, as defined by the survey) than non-producers (consumers). Almost 40 % of households have no producers working in officially registered employment.. Thus, these households, at least officially, are completely dependent on pensions, assistance and social welfare payments. More than half of these dependent households are composed solely of pensioners. This alarming finding might be mitigated by the fact that in the other dependent households, one or more members might derive some income from the shadow economy. Share of shadow economy is 14%.

The introduction of crisis subsistence minimum did not solve the problem at all. Because state was incapable to provide crisis subsistence minimum to the residents. The official sum of crisis subsistence minimum has not been changed since 1994, despite of fact, that inflation is going on. Since 1996 Latvia’s State Statistical Bureau is using method of accounting relative poverty according to standards in EU countries. It means, that concrete percent of average salary and wage is using as poverty measurement per households members. There is no agreement until 1997, what percent from average salary should be considered as poverty line. Therefore Statistical Bureau is using two kinds of measurement: income per household member, which is equal to 45% and to 60% from average salary in country. Those households, in which the income per family member was equal to 60% from average salary are considered as households with low incomes. Their share in the mid of 1996 was 60% and income was 47 Ls per capita (86 USD). Those households, in which the income per family member was less than 45% from average salary are considered as poor households. Their share in the mid of 1996 was 24% and income was equal to 29 Ls (56 USD). The sum of state social allowance in 1996 was even less, 25 Ls (47 USD).

There was not official accounting of number of those, who has appealed for social assistance on means-tested base in 1996.

Equivalence scale has not been introduced in Latvia. It means that value of 1 is assigned to each member of household despite of his/her age. Such approach resulted in fact, that almost all families with two and more children have very low income per capita. It can be perceived as absolutely unreasonable from Western point of view. But there is some sense in such approach using the experience of Latvia. In recent past there were no meters for accounting consumption of cold and hot water, heating, gas. Each flat and house had only one meter, for electricity. In such conditions households should pay bill not for their real using of all these facilities, but concrete sum per capita established by local government. Now things are changing slowly. The number of different kind of meters gradually increases. But the order of payment remains per capita mainly. The status of single person has been taken into account only in case of apply for social assistance benefit.

2.1. Groups over-represented in these categories

To groups over-represented in category of poor people do belong long-term unemployed, especially single person out of labour market, elderly people, families with children and disabled persons. According social survey data, there is close relationship between the proportion of income spent for food and the income per capita as well as the age of respondents. The trend is: the percentage used for food increases if income decreases and age increases. (Dobelniece,1994,p.200)

Latvia has very clear regional concentration of poverty. It is eastern part of Latvia: Latgale, where level of unemployment is higher three times more than average in country during last four years.

3) Perceptions of poverty and exclusion

3.1. As demonstrated through public surveys

One of the indicators describing welfare of households is the self-presented evaluation of personal living conditions. Answers to this question in 4th quarter of 1995 show, that only 3.6% of households characterise their present position as good or reasonable good, yet 58% of households evaluate it as bad or rather bad. At the same time in rural areas the number of households evaluating their position as average is much bigger -i.e. 46.7% (34.8% in cities) and there is a much smaller amount of households describing their situation as bad or rather bad - 48.4% (62.1% in cities). Here we have to bear in mind that average incomes which have remained at the disposal of rural households in the 4th quarter of 1995 have been by 17% lower than in cities.

The questionnaire of public opinion carried out in households at the end of 1995 indicates that 49% of the questioned households to a smaller or greater extent feel the shortage of money for purchase of food. (Economic Development of Latvia,p.51)

3.2. In government reports

The Report “Economic Development of Latvia”, prepared by the Ministry of Economy Republic of Latvia in 1996 has such estimation: “Living standards of a vast part of population are on the verge of poverty. According to the data of Ministry of Welfare in the 4 quarter of 1995 the average amount of old age pensions reached only 76% of the goods and services basket of the crisis subsistence minimum (p.9).

Prime-Minister Andris Shkele in his speech on August 7, 1996 said, that standard of living has decreased and will go down further. The only way, how to overcome it is to introduce socially responsible free-market system. “There just isn’t any third “middle” road - it‘s either private property, or poverty and communism. It has already been proven, on an experimental level, that communism, as a reality, is impossible. However, totalitarism and poverty are, and have been, for us, a daily reality... This government’s and all of our responsibility is to solve specifically the heavy economic problems that we are currently straining under. A developed economy - that means more money, more jobs, large pensions, larger support-payments, larger salaries and better schools, better health care, more security. The ability to survive is the most optimistic evaluation that we’ve received up until now”.

The State president Guntis Ulmanis in his interview to the daily newspaper "Neatkariga" in November 18, 1995 gave his personal (not officially stated) evaluation: "Only a blind cannot see, how difficult is this time for our people. Surely, there are very well dressed men and women, who try to demonstrate their satisfaction. But there are many who are hanging their heads in deep despair. Who and in what way can help them? It is government's duty to think about it.. Each party has its own different approach, but no one has real concrete programme.." President Ulmanis developed his vision of the situation: "The reality witnesses, that we are too deep in poverty swamp and may be for long time. At least I do not see any concrete safe mechanism how to overcome it. No one of politicians who eager power has showed such mechanism. There is only abstract promise or inconsequent jumps from one side to another. Of course, for changing things to the best everyone's attitude is very important as well".

3.3. Main viewpoint in the academic world

Very important data on poverty in Latvia were published in two annual Human Development Reports (1995 and 1996) prepared in co-operation with UNDP. We can consider this data as viewpoint in the academic world. There are some published and already preparing for publishing articles in issue of poverty in Latvia. The author of them is University of Latvia lecturer Signe Dobelniece.

The dominant view is, that large part of population is living below official crisis subsistence level. The level of social protection is poor. Statistics is not full and comprehensive and therefore cannot give adequate picture of going processes. The concept of crisis subsistence level is only the instrument of politics and should be reviewed.

3.4. Main viewpoint in public/media discussion

The issue of poverty is not very popular in mass media. Nevertheless newspapers are publishing from time to time articles about elderly people and children problems. These articles have mainly descriptive character. There are only few publications about some positive experience in overcoming poverty and depression.
At the end of each year a Latvian monthly magazine, Viesis, assembles a panel of 50 well-known pundits, commentators and observers from all walks of life to appraise life in Latvia. In the January’97 edition, it compares the expert pane’s ratings of what frightened them most in 1995 and 1996. In both cases unemployment is on the first place. Among social problems of 1996 the raised rents, illness, alcoholism, a drop in living standards, criminal situation and small pensions were mentioned too. According to Public Opinion Poll data in December 1996 33 percent of whole respondents considered the creation of new job place, the solution of unemployment problems as the main for government agenda. 26% were for priority solution of education problems, 23% for social protection and social policy and 17% for health care. So we can conclude. that in the end of 1996 social problems were on top in Public Agenda with dominance of unemployment problem.
(Diena, 1997, January 27).

4) Policy actors and the policy environment

It is not so easy to typify the emerged welfare state in present Latvia using Esping-Andersen typology. Adopted in autumn 1995 set of social welfare legislation has laid the groundwork for far-reaching reforms. A high degree of commodification of the provision welfare services is the main feature of state policy during last years. It took place not only with food prices, but also in such fields as housing, health care, communications, education policy. In Latvia’s model there is some mixture of features from different models: social democratic, conservative and liberal. But taking into account the reform of social policy, which was introduced by package of seven laws in autumn 1995 one can conclude, that Latvia’s model is very closed to liberal one with some features of conservative model.

In Latvia social policy issue is not playing crucial role for politicians until now. In the same time Latvia in many ways has experienced a social trauma more serious than that in many other countries.

The key actor for legislation, policy development and policy implementation in Latvia is state, represented by civil servants, bureaucrats. After the explosion of activity in 1988-1991 there is the decline in participation. Among the primary barriers to enhanced participation are the socio-economic and political legacy of totalitarianism (a small middle class, political alienation, lack of democratic skills), the fragmentation and weakness of democratic institutions and the economic hardships accompanying the transition.

One reason for the decline in participation’s disappointment with the performance of new democratic institutions. People have greater trust in the institutions of civil society (the church, the media, than in political parties, local governments, the Cabinet of Ministers and Parliament.

During the transition period the number and complexity of social and political problems have increased. The majority of people, however, were unprepared for the new opportunities. The constitutional right to participate in social life and politics does not ensure the ability to do so. Resources for participation are required: knowledge, skills, information and the ability to orient oneself in a mass of information, and the necessary psychological disposition - trust or lack of trust in democratic institutions and the regime, as well as belief in the significance and effectiveness of participation. To participate actively in social and political pursuits, leisure time is necessary. But leisure time is scarce during a difficult economic transition, when, for many eking out a survival and supplementing a meagre income are paramount.

The failure of economic reforms to satisfy public expectations and the slow implementation of many reforms during the transition period have facilitated alienation from politics. On question “How Interested Are You in Politics” (Survey, October 1994) only 6 percent answered very interested, 38 -fairly interested, 41 - not very interested, 15 - not at all interested. (Latvia, 1996, p.98).

One function of political participation is to influence the state to recognise the interests of the members of civil society (i.e. of the population). However, in the transition period government employees often exploit their office for personal gain, demanding surplus payment for their services.

Over a half of the population is directly dependent on the state: state sector employees, the unemployed, pensioners, recipients of benefits. Under these circumstances, a seller-buyer relationship is formed between the state (bureaucracy) and a large segment of the population, leaving no room for equal state-civil society relations. The options of large number of non-citizens for participation are limited too.

While participation in elections, electoral campaigns and NGOs has fallen, there has been a recent increase in the level of protest and contacts with government representatives. We would like to mention one example of such activity. In July 23, 1996 administration of Saeima received document "The Warning to Leading Political and Economic Groups of Latvia" from Council for Co-ordination of Non-parliamentary Parties. This document was signed by representatives of five non-parliamentary parties and was addressed to President of state, to parliament and to Cabinet of Ministers. There are some places from this warning: "The impoverishment of people is going on as results of government and Saeima economic policy. In the same time the small ruling group in state structures is making profit and becoming more and more richer". Pensioners are the one fourth of country population. They made their savings for old age in state saving bank, where it were lost as result of money reform in 1992. Values, which were done during their life, became a property of independent Latvian state in 1991. Ruling power has permitted, that narrow group of new rich became the owner of large share of this property.

The authors of this letter warn present Latvia's ruling elite, that its unlimited liberal policy, which does not take into account elementary rights of citizens on bread, labour, education and secure old days, discredit the international prestige of Latvian state and serves to enemies of Latvia's independence. The largest threat for further state's existence is lost of truth of citizens to their state as defender of their rights, the lost of believe in the mission of state". (Rigas Balss, 24 July, 1996. Rigas Council Daily)

At the end of 1995 dissatisfaction with low wages and a weak social safety net was expressed by 30.000 people in a march led by the Latvian Association of Free Trade Unions. Survey data does confirm that participation in demonstrations and strikes has increased during the 1995-1996.
A comparison of data from 1993 and 1995 suggests that the past two years have seen an increase (from 30 percent to 40 percent) in the number of people who believe that they might participate in protest demonstrations because of economic hardship (unemployment, clothing of enterprises) (Latvia, 1996, p.92)

II - HEALTH AND HEALTH CARE IN LATVIA 

1) Historical legacy of health care policy in Latvia

Health care in interwar independent Latvia (1918-1940) was insurance based. In the soviet period it was provided directly to the entire population by the state health care services. Abolition of many health and recreational facilities provided by firms for their employees took place gradually since 1991 and now only few firms kept them. A lot of them were converted into private or local community facilities or were simply abolished.

The soviet legacy in health care system in Latvia was similar to the situation in other Eastern European countries and the former USSR. The health care system was highly centralised. The treatment was free of charge. The health care system was financed by the state budget. Patients were not free to choose their physicians. There was no competition among medical personnel. Latvia had 14.8 hospital beds per 1.000 population (1985-1990), 49.6 doctors per 10.000 population (1988-1992), 69 year life expectancy (1991). The hypertrophied number of physicians has greatly decreased in the last years. At present this process is stabilising. In recent years the number of doctors in Latvia has decreased from one per 202 inhabitants in 1990 to one per 362 inhabitants in 1993.

The neglectful attitude of a person to his/her health is one of features of society during transition time in Latvia. An unofficial socio-epidemiological survey of popular concern about health in 1994 produced the following results: with a maximum of 10 points, people in Latvia received one point, while corresponding figures were 8.5 in the United States, 7 in the United Kingdom, 6 in Denmark, 5 in Germany and 0.8 in Russia. (Latvia, HDR, 1995, p.71). One of the explanation can be that people are in big concern of survival and work and do not understand enough interconnection of this spheres.

2) Legal framework

Equal rights to health care have been set out in the Constitutional Law "Human and Citizen Duties and Rights" (1991) in article 37: "Everybody has a right to medical services. Everybody's duty is to take care about his/her own health, the health of the relatives and the health of nation. The State protects the health of the population and guarantees to everybody the minimum of medical care, which is defined in law". Accepted four years later Law "About Social Security" (1995) in article 6 has different formulation. It declares that everybody has right (there are no any words about state guarantee -FR.) to a minimum of health care. This minimum of medical care was defined by government in December 1993. It includes diagnostics, treatment and observation of acute and chronic diseases during acute period, ambulance services, the prevention and treatment of infections etc. The Government Order for Health Care provides for the treatment of such serious and dangerous disease as tuberculosis and chronic pulmonary diseases, cancer, malignant neoplasm’s, mental illness, alcoholism, abuse of drugs etc. All citizens and legal residents are covered by the right to a minimum of health care. Since 1997 January there is state earmarked financing to local governments to the needs of health care, which is equal to 21 Ls, or 39 USD per person. The sum of 21 Ls remains constant during three years despite of inflation.

3) Political framework

Public health care system experiences the transition to the market economy in the most painful way. Nevertheless the health care issue and the reform of health care system does not belong to priorities of ruling power.

In the field of health care the main actor was not legislative but executive power. The legislation concerning physicians status and qualification, the rules of treatment have been accepted in 1994 and 1995 by government.

The parliament had accepted Law "On the Medical and Social Protection of Persons with Disabilities" in September 1992. But this law is of a purely declarative character since the moment of its accept until now. The number of disabled persons in Latvia was 127 thousands or 5% from whole population.

The legal rules regulated the status of physicians and the order of payments for their work were accepted by Cabinet of Ministers in 1994 and 1995. The Physicians’ Union has taken over all functions related to the accreditation and licensing of physicians. First officially accepted strategic document concerning this issue was accepted by Cabinet of Ministers in September 1996, when government set up a guidelines for the implementation of reforms. The present government has stated in this document the principle of equality in health and equal access to health care. But some pages later there is remark, that these principles are threatened due to economic situation of country and health care of inhabitants are becoming more and more dependent on their payment capacities.

The issue of health care concept has never been on the parliamentary agenda since the declaration of independence (May, 1990). The Saeima (parliament) had still not adopted the necessary legislation to restructure the health-care system and did not debate the concept.

Latvia is among the countries with the lowest health care expenditure rates in Europe. In 1994, state health care expenditures in Latvia constituted 4% of total GNP.

4) Health care reforms

The issue of equal rights to health and equal access to health care has been brought forward in reform proposals. But the principle of equal rights and access is weakening. Health care reform proposals are influenced by the ideas of broader marketization of the economy. For illustrating this thesis let us look in the changes with Basic Program of Public Health.

This Program was adopted by the Cabinet of Ministers in its decree "About the Extent of Medical Services" December 7, 1993. According it, the health care system must have three basic, clearly defined levels: primary health care (general practitioners), secondary health care (district hospitals or outpatient clinics) and tertiary medical care (highly specialised medical centres).

Primary health care includes emergency care; treatment of all acute diseases and occupational illnesses; diagnosis and treatment of injuries; treatment of alcohol and chemical dependency in out-patient clinics and prevention of these diseases; treatment of children under 18 etc.

The old concepts of centralisation and emphasis have been replaced by principles of decentralisation, quality of care, strengthened education of professionals, prevention and health promotion.

The reform of health care financing mechanisms is still the greatest problem. It deals with the transition from collective financing to free competition of care providers and pay for the work done.

According to estimate of health care specialists of Ministry of Welfare ordinary medical treatments of patients would require at least Ls 80 per person a year. However only approximately one half of the needed sum will be made available from the state and local budgets.

Health Care Insurance offices have been established in all districts and cities in 1995. All budget payments to health care are going through them now. At the same time the Government have gradually introduced with its decrees partly paid health care system. Local compulsory patient payments for every visit do doctor were introduced in many places in 1992. Compulsory and identical patient payments for every visit to doctor were introduced in whole state by Government decision in April 1994. The share of paid or partly paid services in the system of health care is growing.

In July 1995 Cabinet of Ministers had changed the rules of game in crucial way in the situation of deep financial crisis. According to these rules everybody should pay 25% of medical treatment cost. It means, that de-facto state can not guarantee the basic minimum of health care. Such situation gave strong motivation to people to join voluntary health insurance. The co-responsibility of people for their health is being encouraged. The process of voluntary insuring has started. Because in such way it became possible to avoid large payments for treatment in hospitals. The payments for visiting doctors and treatment in hospital were different in different regions of country in 1996. Rigas City Council has introduced the 50% reduction of insurance for persons with officially approved low incomes. Since 1997 the centralised health care financing system was renewed. 28.4% of income tax and subsidies from state budget form earmarked sum of 29 Ls per capita in local budgets. The health care insurance offices are responsible for transferring money to local clinics and hospitals for the minimum of health care.

5) Exclusions

5.1. Health status

The difficulties experienced by the health care system were reflected in a serious deterioration in the health of the population. The indicators for evaluating human health in Latvia are unfavourable. The birth rate is low and continues to fall, the death rate is high. Latvia is ageing. Natural increase of the population has been negative since 1991 and is going to become more so. From 1990 till 1995 life expectancy decreased in Latvia by four years for males and by two years for females. Life expectancy at birth remains one of the shortest in Europe (look table 2).

The Latvian Council of Science on January 1995 provide financing to programme "Latvian population and people's health". The Latvian University scientists-demographers has prepared the informative collection of materials in Latvian language "Population Replacement in Latvia"(1996), which is the first publication of the theoretical foundation concerning the issues of the population reproduction.

It is noteworthy that mortality has grown at an accelerating rate among the working age of population. More than 80% of the total life expectancy decrease in 1991-1994 both for men and women is due to mortality increase in working ages (especially in ages over 35 years). The main reason for high death rate is heart and cardiovascular diseases - 56% of all diseases causing death. In Western Europe this figure fluctuates between 35 and 49%. The second biggest group of reasons of deaths is accidents, traumas and intoxication - 14.4%. The number of deaths because of these reasons counting per 100 thousand people compared to 1990 has grown 1.7 times. Within this group 27% are deaths caused by murders or suicides. Their number in 1994 compared to 1990 counting per 100 thousand people has increased 1.8 times.

Dr. Ilmars Lozovskis as reason for suicides mentioned not only chronic alcoholism, but also inability to adjust to the changing circumstances in the labour market, private and family problems and poverty.

Alcohol -related morbidity has increased considerably, particularly in rural areas. Drug abusers are on the increase, too. Chances per 1.000 persons of eventually dying from injury and poisoning in Latvia for males (204) and females (67) are among highest in Europe. Excessively high rates of cardiovascular disease, lung cancer, respiratory problems and accidents are attributed to the high prevalence of risk factors such as smoking, alcohol consumption, consumption of highly saturated fats, inappropriate nutrition, and environmental pollution in certain areas of country.

67.3% of all adult males in Latvia have smoked for at least one year during their lives. Number of cases under surveillance of health care institutions with diagnosis alcoholic psychosis increased 10 times during 6 years from 12.3 per 100.000 in 1990 to 123,3 in 1995. Chronic alcoholism and suicide are linked, and both phenomena have been on the rise in Latvia. Over the past 15 years the number of deaths due to excessive use of alcohol has formed a steady upward spiral. The figure increased from 3.6 in 1981 to 10.1 in 1993 and 16.5 in 1994.

5.2. Prevention programs to attack risk factors for adult health are poorly developed.

Differences in life expectancy are also observed among educational and ethnic groups. The results of analysis show the decline in mortality with increasing level of education. Urban-rural standardised life expectancies of both sexes for Latvians have had 0.1-1.7 years higher life expectancies compared to Russians for the entire post-war period. The high proportions of immigrants coming from rural areas who have not adapted to urban conditions might partly explain this phenomenon.

NORBALT survey (made in September 1994) gave to us data about self-evaluated general health condition. In the survey the respondents were asked to describe their general state of health. One fourth of respondents considered their health as good (including 3% as a very good). Exactly half the respondents reported an average health condition and one fourth of the respondents characterised their condition as bad ((19 %) or even very bad (6%). The self-evaluation of health varies by the gender of the respondents as well as by age. The difference between urban and rural residence and regions is minimal and hardly statistically significant. The educational level strongly correlated with subjective evaluation. 54% of respondents with primary education (4-6 years) and 32% persons with uncompleted secondary education evaluated their health as bad or very bad, while only 19% of respondents with general specialised education and 14% persons with higher education gave the same answers. (Aasland, p.78; Health in Riga, 1996, p.25)

Those with poor or very poor health (but of working age) also constitute a markedly larger proportion of those who are outside the labour market, compared with those who enjoy average or good health.

In discussions about health care representatives of medicine often stressed, that health is determined by three factors: social conditions (the political system, the state of the economy and education); environmental conditions (uncontaminated water, air, soil and food); and the effectiveness of the health care system. The influence of the first two factors on human health is 75-80%, while that of the third is 20-25%.

Latvia's Saiema has accepted bill to impose a ban on tobacco advertising in mass media in 1996. The collapse of the former health care system and the long unclarity about a new one to take its place have weakened disease prevention, especially suffered the immunisation of children. The incidence of diphtheria increased rapidly from 3 in 1990 to 369 in 1995 or 14.7 per 100.000 population. (Statistical Yearbook of Latvia, 1996, p.149). The incidence of tuberculosis has reached dangerous proportion: from 27.4 in 1990 to 50.6 in 1995. (p.151). A growing number of children with the disease and the spread of its bacterial form demand special attention.

Death rates by infection and parasitic disease per 100.000 population in Riga increased from 11.2 in 1990 to 21.8 in 1994. Number of mental disorders per 100.000 population in Riga increased from 8.0 in 1990 to 11.00 in 1994 (17.8 for whole Latvia).

Latvian researcher Juris Kruminsh (1993) stressed, that mortality from suicide in Latvia has tended to rise during the post-war period, like in many developed countries in Europe. Suicidal deaths rates (per 100.000 population) were as follows: 17.7 for the year 1960; 28.1 for 1970, 34.1 in 1979.

A sharp decline in suicide mortality occurred among men in 1985-1987 as a result of restriction imposed by authorities from Moscow (Gorbachov) to reduce alcohol consumption: 29.0 for 1985. This decrease was accelerated by the Latvian National Revival movement: 22.8 in 1988. Along with the aggravation of economic situation and the increase in social tension, suicide mortality in Latvia began to increase in 1989 and reached 28.5 in 1991, 34.9 in 1992, 42.5 in 1993. More than three out of four suicide cases are male, of which approximately three fourths fall on the working age. Suicide mortality rate is 1.5 times higher in rural areas than in the urban settlements. Especially high rate of suicide is among non-Latvians. Explanation, giving by Kruminsh, is following. Estonia and Latvia are ranked 2nd and 3rd, respectively, among the European nations as to the ratio of foreign-born population. It constitutes more than 25 per cent of the total population (only Luxemburg has a little higher ratio). During the post-war period, mortality among immigrants and national minorities (mainly Russians) was slightly higher than among the aboriginal populations of Latvians. It has been noted that migrant population are more subject to various harmful factors. Reportedly they have more cases of schizophrenia and senile psychosis. Age -specific suicide mortality in Latvia can be characterised as follows: first, a high level of suicide mortality prevails in the oldest age groups for both males and females; second, a very high suicide mortality is observed among the males of working age groups.

The chain of causality often runs thus: an unfavourable social situation- alcoholism- suicide (40.5 per 100 000 in 1994 ). (Latvia, HDR, 1995, p.68-69). All doctors have registered the rising incidence of mental illnesses and depression.

Death through accidental poisoning by alcohol was high in Latvia in 1970th (13.1 in 1980). After that was radical improvement due to active anti alcohol company started by Gorbachov in 1985 (6.0 death per 100.000 inhabitants through accidental poisoning by alcohol in 1985 and even 4.2 in 1990). But the period of improvement was quite short. In 1994 the figure of death through accidental poisoning by alcohol was extremely alarming: 16.7 per 100.000 population.

Nevertheless there is no any regulation in trade of alcohol: you can buy alcohol every time in day and night without any limits.

5.3. Access to, and utilisation of, health services

The range of health care services provided for patients and financed over the state budget has decreased. As a consequence, it has become more difficult to receive medical care needed. Socially vulnerable groups find it particularly hard to pay for health services. An increase in the share of commercial health care services has resulted in a fall in the number of patients attending health care institutions from 25 millions in 1990 to 15 millions in 1994 (roughly from 10 visits per capita to 6 visits per capita).

Evaluating contact with health care institutions in Latvia NORBALT survey found, that urban residents reported more contact with health care institutions than rural. Almost half of rural residents must travel a distance of 5 km or more to reach the nearest health institution, while the distance is even 10-20 km for 8 % of those living in the countryside. The high price of medicine is important reason why people do not always get the treatment they need.

Concerning private practice of health care we can say that it is developing within the boundaries of the law. The reforms carried out in the past years have made an impact on the type of property (alongside with local and state out - patient clinics, privatised medical establishments and private practices have a tendency to increase). Now patients are free to choose doctors. Patients have good opportunities to improve their health and receive high professional help if they can pay money for it.

6) Explanation and comment (evaluation of policies)

Deep economic and financial crisis makes the state apply tight constraints on public spending. It limits both the amount available for health services and what can be spent on social assistance. Moreover, unemployment, inequality, poverty and social exclusion can themselves lead to health problems.

Economic crisis, unemployment and rising prices have increased the number of socially vulnerable people. In the same time it was becoming increasingly more common for services to be partly or fully paid for by fees.

Latvia's health care system is on cross-roads for a long time, and is still waiting for a final decision about model of its development. Until now the largest part of Latvia's population considers, that it should be a state responsibility to take care about health of its population. There is not enough clarity on top levels and in society in general about strategy of reform, its goals and speed, about financial resources for each stage of it. Therefore this issue did not come on political agenda and the reform is going on by making some incremental changes.

Health Care Insurance Offices propose insurance as alternative to increasing payments. Voluntary health insurance is increasingly developing. It is quite successful in state capital Riga region as way how to escape large payments in a cure situation. Those living outside Riga region can use health care service in Riga for reduced prices if they have been voluntary ensured in Riga Health Insurance Office.

Until present time model of heath care system is not clear.

III - HOUSING AND HOMELESSNESS 

1) Introduction

In independent Latvia before second world war in 1939 the urban dwelling stock accounted for 11.8 million sq.metres, meaning each inhabitants had an average floor space of 17.8 sq. metres. During the post-war period building construction increased rapidly especially in Riga and the other major cities. So, urban dwelling stock accounted in 1990 33.8 million sq.metres meaning each inhabitants had an average the same floor space of 17.9. (Changes only on 0.1 sq.metre during 50 years). The total living area per one inhabitant of Latvia in 1995 constituted 21 m2 (19.8 m2 at the beginning of 1991). A slight increase of the total living area compared to the beginning of 1991 is linked mainly with the decrease of the number of permanent residents by 6% during the same period of time. However it must be stressed that approximately 30 thousand apartments are very old and in a poor condition (on the point of breakdown). (Economic Development of Latvia, p.49).

Most households (69%) live in apartment buildings, one fourth in individual houses or farmhouses and 3% in communal flats. Communal flats are dwellings where the household shares certain amenities with other households, such as hall, kitchen and bathroom facilities. Very few households (less than 1 %) can be found in hostels; these are mainly students living on their own. Dwelling types vary greatly from urban to rural areas. More than half (56%) of rural households residue in individual houses or farmhouses. The majority of the urban population lives in apartment houses, e.g. 86 % in Riga and 76% in other cities. In Riga, most households live in apartment houses with 5 or more floors (69%). The same applies to 43% of the households in other cities. In Riga, a relatively large proportion of the households (8%) live in communal flats, whereas communal flats are much less widespread in other cities and rural areas, comprising only 0.5% and 0.3 % of all dwellings, respectively.

The level of organisation of public amenities in the state and public living fund of cities is rather high and it has not essentially changed during the recent years. Yet, the level of comfort of living area considerably differs between cities and countryside. Thus, in rural households is a centralised water supply utility only in 53% of flats (houses), 94% in the cities, sewage -48% and 92% respectively, hot water -23% versus 72%, telephone -46% and 73%.

According to NORBALT survey data, the respondent's profession, position and activity in the labour market, and even their financial resources, have little or no impact on their housing conditions. The average number of square metres per person was very similar for most groups of the population. These data reflected the former egalitarian approach. Studies prove that there were 2.3 rooms at the disposal of a household and the living density calculating per one living room was 1.1 person.

Under the soviet regime housing was cheap. Rents represented a very small proportion of income. Rents, even together with energy costs, rarely absorbed more than 3 per cent of household income. At the same time we must say, that for much of the Soviet period urban living space per capita was below the sanitary norm of nine square metres. By the end of 1989 the number of households registered on waiting lists for receiving a larger or higher quality dwelling had reached 165.000, meaning that approximately one household in seven was in the line for a new dwelling.

Section 1. The structure of the housing stock according to the type of tenure.

Under the Soviet regime, Latvia’s housing stock was characterised by a large state rental sector and a much smaller private sector, as is typical of centrally planned economies. In the end of 1995 most people were still living in state or local government-owned houses. The main changes in the structure of the housing stock according to the type of tenure are connected with share of private and public sector. Share of private sector increase on 18.3% from 26.1% in 1990 to 44.4% in the beginning of 1996. Share of public sector decreased on 20.9% in the same time from 69.2% to 48.3%. (Look table 3.1). The form of ownership varies greatly by the level of urbanisation. In rural areas the majority of households live in houses and dwellings owned by the household itself, whereas the corresponding figure for Riga was only 5% in 1994. (Aasland, p.56-57).

In August 6, 1996. the term "social flat" arose for the first time in government document. Latvia had no such term before. The Commission of Saeima in October 17, 1996 introduce to Saeima first draft of Law "About Social Flats and Social Houses" Therefore now it is impossible to evaluate the share of non-profit housing for rent.

Section 2 and section 3.

Until 1990 state has financed 80% of all construction works. Now the state activity in construction field is minimal.

Latvia has no any system of subsidies to construction works and housing benefits. There were no such terms as publicly funded housing for rent, non profit housing for rent in legislative lexicon. Nevertheless due to migration from state and negative natural increase of population there is increase in space per capita in sq. metres from 19.8 in 1990 10 21.1 in 1995. (Latvijas dzivojamais fonds. 1990.-1995. p.5)

The first attempt of legislator to give definition of social flat was done in autumn 1996. But until the beginning of 1997 there was no full clarity about the status of social housing and social flat.

The total amount in national currency spent each year by the government on housing decreased rapidly for more than 500 times since 200.9 in 1990 to 0.4 mln. lats in 1995 in constant prices of 1995 (look tables 3.3, 3.4, 3.5). However in general this decrease was not 500, but 9 times less. Because in private sector there was increase for 19%. There were one hundred dwellings, completed by state and local government enterprises and organisations in 1995. It means that all main activities in this area were connected with private sector and statutory companies.

Section 4.Can people who are not nationals of your country but are legally resident access

Article 21 in Constitutional Law “Person’s and citizen’s rights and duties” states: "A person may own any property, except for property referred to in the restrictions stated in Article 9". Article 9 mentions land and other natural resources. These may only belong to citizens. In reality the situation is somewhat different. Only citizens may buy privatised apartments, only citizens may receive loans for the construction of a house. Latvia’s legislation in 1996 stipulates that land in Latvia can be owned only by citizens or foreign legal bodies from countries with whom Latvia has bilateral agreements on investment protection and promotion. In 1995 Latvia had just a few agreements while in 1996 19 more agreements were ratified by Saeima. In the end of 1996 radical changes have been done to bring Latvia’s land ownership legislation in line with EU standards. Now those people who are not nationals of Latvia but are legal resident have not access to land ownership, but they can be home owners.

There is no difference between citizens and residents concerning access to shelters.

Section 5. Groups at higher risk of becoming and remaining homeless than other population sub-groups in Latvia.

There is no special research and analysis about homeless people in Latvia, because these kind of exclusion is relatively new for our society. In the Soviet period there was freedom from eviction. Now tenant’s rights are formulated in Law "About Rent of Living Place" (accepted in February 16, 1993, is in force since April 1, 1993). According article 29 of this law it is legal to evict tenant without providing any living place for him/her in case if tenant had not paid rent and communal services payments during more than three months. This procedure should be done through court informing tenant about such measure one month before.

Looking for group of higher risk we can say that drug addicts is relatively new, but rapidly growing group and as such is of higher risk to become homelessness. Alcoholics and ex-offenders belong to groups at higher risk of becoming and remaining homeless due to negative attitude of society to both of them. Alcoholics (extremely rapidly growing group) have higher risk become and remain homeless due to fact of high risk of losing job and high risk to being divorced or single.

A markedly negative attitude towards the mentally ill prevails in society. Many patients are forced to stay in mental hospitals and similar institutions for a prolonged period or even life. Guaranteeing the human rights (especially the property rights) of the mentally ill remains an acute problem. Until mentally ill are in hospital they keep their right on living space. But they lost it since they are staying in specials institutions for mentally ill.

Legislation in Latvia establishes social guarantees for persons discharged from prison: 1)they have the right to return to the housing space where they were registered before detention; 2)the right to receive social aid and benefits; 3)the right to be registered as unemployed, to obtain information on job vacancies, to receive job offers, to receive unemployment benefit constituting 70% of minimal salary during 6 months, to receive grants during vocational training and retraining, and to participate in salaried temporary social work.

But in order to implement these rights, the person leaving prison must have all the necessary documents: a passport, a resident's registration code and a residence record. The Minister of Interior Affairs Dainis Turlais gave the information to Parliament about persons in prisons on January 1996. Among convicted 6348 persons less than half (2850) were citizens of Latvia, 6 were citizens of Russia, 2 - Ukraine, 2 -Lithuania, 1- Byelorussia. Status of more than half convicted person was unclear, because they were not registered as residents in Register of Latvia's population. (Diena, February 9, 1996). But it means, that nobody of them has resident's registration code and very many even a residence record. In such case they have no legal rights on any living space and are potential homeless. A person discharged from prison receives a reference needed for obtaining passport and a 5 lat (10 USD) benefit. Thus, such people lack any means of subsistence and the possibility of realising their rights.

Courts and local authorities avoid to make decision to leave large families or single parents without any living space. When one such situation had happened in July 1996 and some families should spent some nights without any shelter, there was quite big noise in mass media. All persons received living space with some facilities or without facilities.

Gypsies in Latvia are living in concrete districts and have no nomadic life-style. No any ethnic or religious group is at higher risk of becoming and remaining homeless than other population sub-group.

Section 6. Vagrancy.

There is no special anti-vagrancy law in Latvia. Every legal person in country should have his/her passport (since 16 years), a resident's registration code and a residence record.

Section 7. An official domicile or proof of address as requirements for access depend on kind of services.

Health care in emergency is free for everybody. Health care for money you can receive everywhere. Polyclinics organised special action 1996 winter giving food talon for persons without permanent address, if they have received vaccine against tuberculosis. For visiting doctor in polyclinic for lower price everybody should have a resident’s registration code and a residence record. The same compulsory precondition is necessary for receiving non-contributory minimum subsistence means.

Citizens having passport can vote everywhere in national elections. For local elections they need proof of address. Residents have no right to vote in national and local elections. For education and training in state organisations person needs to have a passport and resident's registration code or special permission for staying in state. Every person since 16 years has to have passport. There are two kinds of passport: for citizens and for residents. Non-citizens will start to receive their new passports since March 1997.

Section 8. Institutions for homeless people

Institutions for homeless people are relatively new. The official document about main positions required for such institutions (night shelters) was accepted by Cabinet of Ministers on February 21, 1995 (Latvijas Vestnesis, 1995.gada 7.marta). In accordance with this document shelter's function should be to provide homeless with lodging, supper and possibilities for person hygiene. The organisers of shelters can be local governments, religious and public organisations, private persons, who have received licences of Ministry of Welfare. Organiser should finance its shelter and can involve in this procedure other persons and organisations. If there are problems with approvals of person belongings to one concrete place all payments should be done by state. Shelter in co-operation with employment services and local social assistance should stimulate its clients involving in public jobs.

There are shelters in each district of Riga and in main cities Daugavpils, Liepaja, Rezekne, Ventspils, Jelgava. According official data of Ministry of Welfare there were registered 404 homeless persons on January 1, 1996, from which 71 in Riga, 253 in other cities and 80 in rural area.

Shelters for men, women and children are run predominantly by public authorities. Some shelters for children are run by non-profit associations "Children Fund".

Shelters for adult homeless people are funded predominantly by public authorities. Shelters for children are funded by public authorities and voluntary donations from Western countries (Netherlands are very active in this area). One shelter in Riga for women and children is funded partially by church, partially by local government.

Section 10

The right to living space is affirmed in the law "About Rent on Living Place", 1993, February and in law "About Social Security", September 1995.

Section 11

Homeless people and people already evicted in accordance with court decisions have no a legally enforceable access to housing. People threatened by homelessness are evicted only on base of court decisions and mainly to old houses without facilities.

In housing legislation in Latvia we can distinguish two parts: property rights and tenants' rights. Under the Soviet regime, Latvia's housing stock was characterised by a large state rental sector and a much smaller private sector. Most people are still living in state or local government-owned housing.

Laws about housing restitution were very important concerning housing property rights. These laws were accepted in the first months after renewal independence, October 30, 1991. (Law "About Returning Housing to Legal Owner" and law “About Denationalisation of Housing in Republic of Latvia" (Zinotajs, 1991, nr.46.). Both these laws declared, that "Housing property rights had been renewed to former owners (it means to those who were owners in July 1940 -F.R.) or their successors regardless to their present citizenship. The denationalisation process (restoration of ownership rights to nationalised property) began in 1992 and is going on until present time (look table 3.2)

The time of making appeal for former owners or their heirs (legatees) was three and half years and finished already in mid 1995, July 1. Total number of claims from former owner or their relatives from the beginning of denationalisation in 1992 till April 1, 1996 was 22.305. 12.174 of them (55%) were submitted for consideration during this time. The building was returned for 85%, 7% have received compensation and only 8% of considerate claims until now have received negative answer. More than 10 thousands (10.317) claims for housing were not placed for consideration( or were placed, but were not solved) on January 1996.

Only 74 % in 1994 and 75 % in 1995 of denationalised building owners are living in Latvia. At least one quarter of them are citizens of USA, Australia, Israel, Canada, Germany, Sweden, UK and many other countries, including Venezuela, Brazil, Argentina, Singapore etc. Since the beginning of denationalisation process until April 1, 1996 former owners or their successors have received 9366 houses (4663 thsd. sq. metres), including 8299 living houses with 60 thsd. flats (2921 thsd. sq. metres). (Source: Pielikums Latvijas statistikas ikmenesa biletenam Nr.4/1996). Law protects the tenants of denationalised housing during first seven years from eviction, if they are able to pay their rents.

The second part concerning legislation on housing property is connected with privatisation laws. On December 4, 1991 Law "About Privatisation of Co-operative Flats" was adopted by parliament (Zinotajs, 1991, nr.51). According to this law 180 thousands co-operative dwellings were privatised in 1992 and 1993.

Law "About State and Local Public Housing Privatisation" was adopted by parliament only in June 21, 1995. (Zinotajs, 1995, nr.16). But real process of flat privatisation started only in spring 1996. So, there is very short time for evaluation this process. People are now being offered an opportunity to take over ownership of housing currently owned by the state or local government. The implementation of this law is oriented to deal with 300 thousands public flats and 180 thousands co-operative flats. (Valdibas darba gada parskats. No 1994.gada augusta lidz 1995.gada augustam. lpp.67). During year 1996 less than 50 thousands public flats and 1.380 houses were privatised using certificates. It means, that this process is only in the beginning.

The new rules in legislation concerning tenants’ right were introduced in 1993. The Parliament of Latvia in February 1993 accepted Law “About Rent of Living Space”. According to this law it becomes legal to evict a family from its flat after 3 months of non-payment of the rent on base of court decision.

Here we should take into account, that the removal of state subsidies for rent, electricity, gas and household heating started in summer 1991. The figures in table 3.6 show, that increase in rent and especially increase in communal services payment was higher than consumer price indices. In 1992 consumer price index was 1.508, but communal service price index was 10.637, or 10 times more. Rent price index in 1992 was 1.5, but in 1993 4 times more than consumer price index.

Rent rises consequent upon the reduction of subsidy and the move to market resulted in a rapid rise in the non-payment of rent. In some districts non-payment of rent and communal services has risen to 40-60 per cent. Such situation was easy predictable taking into account the low purchasing power of population. Therefore on June 16, 1993 Council of Ministers with its statement nr.311 established limits on the highest levels of rent payment; rules about accounting payments for communal services: heating, water supply and so in were left in local government discretion. In winter 1993/94 and later problems were partially alleviated by the introduction of means-tested housing allowances. As result: the largest part of social assistance, what local governments was paying to population of their area, were in 1995 means-tested housing benefits. Their share was equal to 44% of whole sum, spent on social assistance benefits in cash and in nature in Latvia and even 60 % in Capital Riga. Those, who are incapable to pay rent and communal services payments, should fulfil declaration about their income for receiving any sum of social assistance. But local governments have not enough resources to help to everybody. One way, how they try to cope with situation is publishing long lists of those having debts in the local newspapers. Courts are looking cases of eviction. They are overcrowded with such job. The number of appeal for evictions was so large, that in May 1995 The Plenum of Supreme Court had to give special explanation, how to deal with them, stressing that it is necessary take into account the individual situation. Until now quite often the solution is removing families from comfortable large flats to smaller ones with some facilities or even without them. In such way de-facto “social houses” are becoming reality in Latvia. But very often words “social houses” mean not publicly funded, but simply those old buildings with minimum facilities.

Gradually it became ordinary, that some houses, in which tenants have debts, did not receive any heating during weeks and months despite of any minus temperature outside. In winter 1996/1997 such approach was experienced even to hospitals (for some hours only) and for schools too if they have large debts for heating.

In summer 1996 government has done next step to market economy and abolish rent limit, leaving this problems on competence of local government. The motivation of this step was rational one, because share of rent in common housing payments was very small and does not provide money for repairment jobs. In October 17, 1996 Saeima sent to Commission amendment to Law "About Renting of Living Space” about necessity to establish additional institution to deal with issue of relationship between owner and tenant, because (I qoute MP Dobelis) "The courts are overcrowded with appeals of house owners and there is no any doubts, that number of such cases will increase in situation, where there is no any state limits on rent". (LV, 1996, October 22)

Now house owners can define the rent level by themselves and should inform their tenants six months before about new prices; local governments should inform one months before about changes in communal payments. On January 1997 Latvia’s parliament accepted new rules, that local governments are free to establish sum of rent.

But nobody can or will manage with natural monopolists in supplying heating, cold and hot water. Therefore there are very big differences in prices on heating, gas and water among several districts and towns of such small country as Latvia is.

At present 56% of the tenant make rent payments and payments for municipal services regularly, 32% do it partially but 12% are not able to pay at all.

Higher risk of becoming and remaining homeless have the tenants in denationalised houses. They cannot privatise their flats by certificates, because there is already owner of property, house owner. In the same time there is extremely small opportunity for them to privatise for certificates any another flat, because tenants of this flat have primary right to do it. Theoretically they can buy new flat. But only some of them have enough money to do it. This is new situation for Latvia and there is not enough experience to make forecasts about extent of this problem. Because house owners have rights to establish their own rent without limits only recently

During the year 1996 there was rapid increase in cases when people turned to the National Office of Human Rights to receive consultation and advice how to deal house owner, local government, house managers. The “Tenants’ movement for their right” (leader Vladimir Bogdanov) started in 1995. They have published newsletter explaining their intention to educate tenants about their rights, to learn them, how to make contract with house owner or house manager, how to understand such contract, how to react on any changes in this contract. Vladimir Bogdanov, who has graduated law faculty of University of Latvia, in his weekly meeting with persons in needs, explains them, that they should perceive themselves as equal partner making any kind of contract and should demand explanation in written form about all changes in contract. These changes are going constantly due to the increase of prices for communal services. Here “Tenants’ for their rights” movements position include demands for maximum transparency about the mechanism of forming prices. It is really very necessary, because in Latvia we have companies responsible for water, heating and gas supply, which are natural monopolists in their area. Mayor of Riga Maris Purgailis answering the question “Do You know the real price of energy and heating” recognised, that “it is impossible to check all positions and to receive access to information we need. The possibilities of Rigas Council to protect customers are very limited, but customers themselves have no any rights.(Santim , October 16- 23, 1996.)

NORBALT survey data in 1994 show, that about half(47%) of the households are satisfied with their housing conditions, almost one third could not give a definite answer and one fourth are dissatisfied. The survey results clearly reflect the fact, that people have had few opportunities to influence their housing conditions so far, the development of a true housing market based on market principles still being in its infancy. There is already a tendency, however, for the financial resources of the individual household playing a greater role in housing transactions. One sign is that rent hikes and rises in local community charges (heating, electricity and gas) have already forced some families to move to smaller apartments, where the prices are more affordable. This process is likely to create new inequalities. (Aasland, p.68 -70)

We can conclude, that the wide interpretation in Latvia’s legislation status of those persons, who can be the subject of restitution, delay of laws, regulating housing market, the large time interval between laws resulted in situation, when the large part of tenants do not feel themselves protected in their rights.

IV - EMPLOYMENT AND UNEMPLOYMENT  

Unemployment presents a particularly difficult problem for Latvia. Although generally it has not yet reached very high levels (still only 7.1 percent), the point of comparison is that under the centrally planned regime open unemployment did not exist at all. Work was indeed available for the vast majority of the population. Often, however, this was only a way of hiding unemployment. Little productive work actually took place in many workplace. There was a heavily work-related element in the benefits system. The cornerstone of social security under the Soviet system was the right to work, upon which other policies for income maintenance were based. Unemployment is closely connected with economic reform, with the necessity of reconstructing the economy, with the moral and physical age of equipment and with the withdrawal traditional links with previous partners. Therefore it is structural and long term unemployment.

Section 1. Women and employment

In Latvia there does exist a legal right guaranteeing equal treatment for women concerning access to employment, equal pay for equal work, career advancement. The Constitutional Law, the Labour Code, Civil Law and international Conventions, ratified by Latvia stipulate the equality of sexes. There are data about monthly average wages and salaries of employed in the economy by sex and by kind of activity in 1992 and in the first quarter of 1994. Female wage compared with male wage in total was 81% in 1992 and 77% in 1994. But is too short time to generalise tendency. Female wage highest proportion to male wage was in agriculture, hunting and forestry (94%), in public administration (92%), the lowest in transport and communication (69%), health and social work (81%), education (82%). The majority of women work in lower paid profession. Almost one third of all women (30.6%) work in education and health services. In these sectors salaries are lower than in other professions. Latvia's Report to the Fourth UN World Conference on Women points out that the main reason for the feminisation of poverty is the relatively low pay for work in social services, despite high qualifications required for such job. If salaries depended on qualification and educational attainment, income differences between the genders would be equalised. (Labour in Latvia, p.96; Latvia, 1995, p.39-40). Share of women is lower in leading positions in all branches of the economy. Women are not proportionally represented in legislative and executive institutions. 16% (16 seats) in 1993 elected parliament and 8% (8 seats) in 1995 elected parliament. The woman Ilga Kreituse was a speaker of present parliament (November 1995 -September 1996). In present government (formed in 1995, December) there were not any woman out of 16 ministers and two women - state ministers out of 12. The share of women among local government deputies is larger - 39%. The smaller the administrative structure, the more women there are among deputies and heads of local governments.

Women traditionally constitute half of all people employed in the economy of Latvia (47.8 % in 1992, 49% in 1993 and 52% in 1994). The share of women is largest in health services (83%) and education (77%). Women comprise the majority of those employed in various types of services: hotels and restaurants (76%), sales (64%), financial (73%), postal and communications work (65%). (Labour in Latvia, 1995, p.23-24, 26, 96)

There were no any public precedents until 1997 when a violation of these rights was brought to a law court. There are no any special means of the court to enforce these rights. In 1997 there are about 15 women’s organisations in Latvia with memberships ranging from the tens to several hundred. The programme of the Women’s Council calls for true gender equality. Many of these organisations are engaged in charitable activities and assistance to those in difficult starts (the Women’s Aid Corps, The Women’s Charitable Fund, the Club of Businesswomen) and to unemployed women and single mothers (the Russian Community’s Women’s Club “Hope” and the Society of Single Mothers “Initiative, Hope, Help”). The most well-known of the organisations are Latvia's Women's League, Latvia's Union of Academically -Educated Women, the Social Democratic Women's Organisation. Social Democratic Women's Organisation (Chairperson is Laila Balga) helps women with judicial consultation on employment problems.

There do not exist any measures of “positive action” or “positive discrimination” in favour of hiring women neither in the public or in the private sector.

Section 2. Foreigners and ethnic minorities

Latvia’s Labour Code, Art.15 declared, that there should not be any kind of discrimination on basis of ethnic origin, race, gender, age, religious, political view, social origin and extent of property.

The official interpretation of the difference between rights of citizens and ones of the permanent residents (non-citizens) is that the difference refers only to political rights. The evidence shows the opposite: the difference in formal political status is leading to increasing difference in political rights, social security, property, employment and other rights. Some state jobs are reserved only for Latvian citizens. Non-citizens found themselves to some degree excluded from employment.

The review of such jobs, which are reserved only for Latvian citizens, was compiled by Boris Tsilevich and Alexander Ruchkovsky (INSIGHT Ltd.) and published in daily newspaper "Diena", 1994 May, 10. It was quite long and detailed list of more than 50 positions: state office, service in the police, position of a judge in court and members of jury, positions in state security bodies, certain categories of civil service, diplomatic and consular service, the position of a custom officer, land surveyors and afforestation inspectors etc.

From first look it may seem as very normal and usual demand, because all positions, mentioned above, demands deep loyalty to state. But specific of Latvia’s situation is in fact, that the adoption of these laws and amendments mean, that those persons, which were in positions, mentioned above, had to leave them. Taking into account, that 30% of population of Latvia are not citizens, including those who had born in Latvia 30 and 50 years ago, the number of persons, which had change their style of life and their job or simply to leave the job, is quite large, but there is not any official statistics about precise data.

Only some selective data. For example, candidates for civil servants could fulfil their duties during two years after going through procedure of attestation. There were 345 such noncitizens on June 1, 1996 in position of candidates for civil servants (127 - in Service of State Incomes in the Ministry of Finance, 52 -in Ministry of Welfare, 34 - in Ministry of Land and 33 in Ministry of Economy. 171 out of 345 had to leave their positions until the end of 1996, because they cannot become citizens according rules of the Republic of Latvia Citizenship Law. (Diena, June 9, 1996) Such radical changes of staff would be too painful for Ministries. Therefore there was special decision in autumn 1996, which prolonged to this persons opportunity to stay on their place.

In accordance with the current legislation of the Republic of Latvia certain private jobs and private enterprises are closed for non-citizens. There are, for example, barrister and assistant barrister, private detective activities, notary and notary assistant etc. In the end of 1996 the Parliament of Latvia reviewed this list and made it shorter for some positions.

At present there are no signs of discrimination against the unemployed on the grounds of their ethnic origin. The only exception is the need to know the state, Latvian, language at a reasonable level, which has created problems for persons with a weak knowledge of the Latvian language. According 1989 census only 20% of Russians in Latvia knew Latvian language. In conditions of official rustication policy there were no any special need for them to learn Latvian. During last seven years this data has been improved, because there were many courses of Latvian language, paid and unpaid. Nevertheless the knowledge of Latvian language is serious obstacle for many Russian-speakers. In big cities, it is difficult to locate jobs for the unemployed who lack knowledge of the state language. According to State Employment Service data in 1995, about 40% of all registered unemployed in big cities do not know the state language. There are three levels of demands for Latvian language knowledge: high, medium and low. The low level is necessary for all jobs.(Latvia, 1995, p.64)

Concerning legal foreign workers since 7 June 1993, the "Regulation on Approving Invitations to Work and Receiving Temporary Residence Permits for Foreigners and Stateless Persons" have been in force. When a Latvian enterprise signs an agreement with a foreign partner under which foreign workers and specialists work by contract in Latvia, the enterprise must get approval from the State Employment Service regarding the number of foreign employees and their posts. SES local offices approved 367 invitations of foreign labour in 1994. (Latvia, 1995, p.65).

It is legal to discriminate in employment on the basis of nationality (not ethnic origin) concerning noncitizens with certain occupations.

In case of unlawful discrimination everyone can apply to all official institutions: Law court, Administration, Government office, National State Human right office. Latvia has no any special system for this purpose. Court system in general is responsible for this area.

Organisation "INSIGHT Ltd" is working in the area of non-discrimination on the basis of citizenship and some other NGO

The problem of helping to regularise the situation of illegal immigrant workers is not acute in our conditions

Section 3. Pensioners

Legal retirement age is 60 for men and women since 1996, January 1. According to present legislation women can retire at 55, official retirement age for women in 1996 is 56 with gradual half of year increase each year until they reach 60. Retirement is not obligatory at this age. Pensioners do have right to work since January 1, 1996.

There was no constant rules in 1990-th dealing with the pensioners right to work. It was permitted in early 1990-th, when the official number of working pensioners was 153 thsd., or 23.8% out of all pensioners. Later in conditions of growing unemployment and economic crisis state abolished this opportunity. Therefore the official number of working pensioners reduced until 47.9 thsd. or 7.2% from all pensioners in December 1995, when pensioners could not combine receiving pension and salary.

Since January 1996 working pensioners can benefit at the same time from a retirement pension. Average official sum of pension is lower than crisis subsistence minimum, therefore people try to find some work. Since 1996 it became possible to review the sum of pension, if pensioner has paid social tax at least for one year. In such way pensioners have interest to show their additional income (if they have it) and Social Insurance Fund profits from it. In March 1996 it was 52.3 thsd. or 7.8% from all pensioners. We see some small increase three months after accepting new rules.

As a rule individuals cannot be forced to take early retirement, because official retirement age is quite low and state has not any additional money for pensions. Only exception from common rules are representatives of very specific occupations: ballet dancers, circus artists, police, army. There is no any legal minimum age for early retirement, there is minimal number of working years

Section 4. Insertion for the young unemployed

There do not exist any specific measures aimed at employment for the young. There only exists unemployment benefits amounting to 70% of the minimum wage for those who have never been employed. These categories includes graduates of educational institutions starting with 15 years old persons (because according to present legislation person under 15 should be in education system). Young persons can receive this benefit for 6 months. The period can be prolonged until 12 months by local governments on conditions, that the unemployed person participates in unpaid social work 20 hours per week or 81 hour per month. Due to the lack of information about registration rules and receiving status of unemployed person in 1991 -1995 there were quite large difference between registered non-working juveniles under 18 years at SES and unemployed among them.

Unemployed person aged 18 can in addition receive stipend (50% from minimal wage) during 6 months, if he/she is taking training program.

According State Statistics data Juveniles under 25 comprise 18.3% from total unemployed person in January 1995 and 17% in July 1996. (Labour in Latvia, p.46; Monthly Bulletin, 1996, Nr.6, Pielikums, p.1). But according NORBALT research data, 1/3 (or 34% ) of population in this age group was unemployed.

The young people in age group 15-24 is one of the most vulnerable. The number of criminals among teenagers is very high.

But there is no any special state youth policy. There is not any state department, which would deal with young persons over 18, trying to help them find job-place. The only one, which is dealing with this problem, is Youth Department in Ministry of Education (established in 1993). But this Department is small and not capable enough to solve problems faced. This problem does demand to combine and co-ordinate efforts between Ministry of Education, Ministry of Welfare and Ministry of Interior Affairs. But there is not special youth commission even in Parliament. The network of local co-ordinators in Youth affairs is in stage of early beginning.

Section 5. Long-term unemployed

According to Latvia’s legislation until 1997 all unemployed persons after 6 months should be considered as long-term unemployed. But we here follow approach, that long-term unemployed are those who are without job one year and more.

The dynamic of long-term unemployed out of total unemployed is as follows: 1993, December - 3.5%; 1994, December - 17.6%; 1995, December - 25.5%; 1996, July - 28.0% (Monthly bulletin of Latvian Statistics, 1996, Nr.5, p.46-47, 1996, Nr.6, Pielikums, p.1). In June 1996 30% of unemployed had rights to receive unemployment benefits. The rest have right to apply for social assistance benefit to local government’s social assistance office. But the chance to receive it depends on resources of local governments. If there is high level of unemployment in concrete area, there is minimal opportunity to receive such benefit.

The relatively small figures of unemployment in conditions of such deep economic crisis can be explained by various factors. First of all the largest part of pensioners were retired: they formed 9% of workforce in 1989. A second factor is registered and unregistered emigration from Latvia. Net external migration in 1989-1995 is equal -128.8 thsd.(more than 5%)

The main stream is going to CIS, especially Russia. The net migration to Western countries increased from near zero at the beginning of 1990, to 1764 in 1995. The majority of West-bound emigrants go to the USA, Israel and Germany. Emigration is age-selective, comprising the younger and nearly middle-age groups. Their level of education is higher than average.
(Latvia in Figures, 1996, p.28-29; Demographic Statistics in the Baltic Countries. 1996. Tallinn, Riga, Vilnius, p.10).

Some of those going to Western countries for good jobs became victims of dirty business and became prostitutes. The number of prostitutes increased rapidly in Latvia in 1990, including young girls under 18, 16 and even 14.

There is no any specific measures aimed at insertion for the long-term unemployed and no any special statistic about the number of retrained among this group. State statistic data give only figures about retraining program in general.(Look table 4.1).

There is no wage subsidies or lower social contributions in the case of hiring long-term unemployed. There is no special job creation in the public sector for long-term unemployed. As active labour market measure exists the involving the unemployed in salaried temporary social work. Here with social work we mean each publicly useful as a rule low qualification work. There is draft to create a computerised information system in SES institutions. Hopefully it can help to know better situation with long-term unemployed persons. Because until 1997 after the expiration of the six-moths period during which they are entitled to receive unemployment benefits, many inhabitants who reside far from SES departments and offices in rural areas do not turn to the SES and register as long-term unemployed. There are no official statistics as to the number of such persons. Non any state institution has special responsibility to help to such person. According liberal approach adopting in social assistance in Latvia person should to identify his/her own needs, formulate them and after it turn for the help. If there is no any appeal, it means, that there is not problem at all.

Section 6. Child labour.

There does exist a legal protection against child labour in Labour Code and UN Charter, which Latvia has accepted. There is a legal minimum age for work. It is 15 for full time. In this case full-time means 35 work-hours per week. For part time work it is 13 years in time, which is free from school studies with parents permission and for work in healthy and moral conditions. Labour Code, Art.180. But not any state institution seriously follows the fulfilment of this rule. This protection can be legally enforced through court, but until now there is no any case of such nature. Official organisation, which is responsible for child labour protection is labour inspection, but it does not follow the situation in private sector. Many children themselves and their families are interested to have paid jobs in any conditions: to be nurse, cleaner, newspaper seller etc. There is no estimates of the existence and scope of child labour in Latvia.

Section 7. Role of Labour Office

There does exist State Employment Service (SES) in Latvia. The creation of a broad SES network in the country was completed in 1993-1994. SES is collecting demands and offers for employment. But there is no compulsory duty to employers to inform SES about their demands. There is possibility to receive this information free of charge for any job-seeker. In 1994 21.8 thousand persons found jobs with the assistance of the SES. One of the very popular forms of training involves teaching the unemployed how best to seek new work. This training resembles the "job clubs" widely known and used in Sweden, the UK, the USA and elsewhere. The unemployed are offered more than 30 different study programmes, including personal computer operation, accounting, private entrepreneurship, sewing, secretarial skills, welding, brick-laying, tree-felling and carpentry. According to SES data, about 35-50% of such people find employment within half a year after completing their studies. (Latvia, 1995, p.63) The problem is that only small part of unemployed have opportunity to be involved in such activities: in 1994 -5251, in 1995 -6316. In January-June 1996, 4.5 thousand or 5.2% of the total number of unemployed were referred for vocational training or retraining courses. Per cent is very small.

The employment situation as a whole will depend very much on the initiative of private entrepreneurs. Unfortunately, legislation did not stimulate the initiative of private entrepreneurs and further development of an enabling environment for increased business activity. Some positive changes took place only in the end of 1996.

Access to the services of the labour office have all categories of job seekers, which have been registered in such status.

Geographical coverage of the labour office. State Employment Service consists of an administrative office with a staff of 35 persons, six financially independent city offices, 22 city and district departments and 41 agencies. Thus, SES representatives work in every town or village with a population over 1000. There is no region that is not covered by the labour office. The problem is only in fact, that in rural regions with low population density (average density for Latvia is 39.7) it is quite expensive for unemployed people to visit such office once per month. Therefore unemployed persons after the expiration of the six-moths period during which they are entitled to receive unemployment benefits do not turn to the SES register as long-term unemployed. There are no official statistics about the number of such persons.

In 1996 there were more than 35 private firms which receive licenses from the Ministry of Welfare Licensing Commission and conduct job searches for fee. Non-governmental private companies are working actively in big cities collecting demands and offers for employment.

Section 8. Role of the Trade Unions

There does exist a right to form trade unions. Constitutional Law, Article 31 stated: "Everybody has right to create public organisations". Law "About Trade Unions" was adopted by parliament on December 13, 1990. The number of Trade Unions members from 1993 to 1995 decreased twice from 624.7 thousand to 321.6 thousand. Share of Trade Unions members among all employed decreased from 47.8 in 1993 to 33.8 in 1995. (look table 4.2). There does exist right to strike in Latvia’s legislation (Constitutional Law, Article 26 and Law "About Trade Unions", Article 20). More active in using this right are teachers and doctors, but not manual workers.

According to the law Trade Unions are empowered to negotiate wages, employment, labour conditions, economic restructuring. But in reality their role is to make recommendations to government and to Association of Employers. There is some kind of social partnership.

The concept about basic principles of tripartite co-operation (Ministry of Welfare, trade unions, employers’ organisation) was accepted by the Cabinet of Ministers in October 1993 and institutions were established: Consultative Council of Latvian Employers, State and Trade Unions, Work Security Council and Social Insurance Council. In 1994 there was declaration about stable long-term co-operation between government and Trade Unions in areas mentioned above and recommendations to local governments and employers to make collective agreements and labour agreements.

But in reality there was impossible to empower the right negotiate about wages, because since 1993 very typical are situations, when workers cannot receive their salaries and wages for many months. Wages and salaries not paid to employees as of January 7, 1994 for the years 1992 and 1993 by city and district made total sum 5705.4 thsd.Ls, of which 5021.9 thsd.Ls on 200 state and local government enterprises and 683.5 on 189 agricultural enterprises). Taking into account that monthly average wages and salaries of working persons in state and local government enterprises were 23 Ls in 1992 and 52 Ls in 1993, everyone can understand the extent of problem. (Data from "Labour in Latvia, p.110-112). The situation left almost the same during whole 1994 with very small improvements. Total sum of wages and salaries payments not actually paid for previous period to employees of state and local government enterprises, institutions in December 31, 1994 was 4308.3 thsd.Ls (monthly average salaries and wages were 77.26 Ls in 1994). Cabinet of Ministers had this issue on agenda only in 1995, March 28 and allowed to sale the property of state enterprises in order to pay debts for workers. But until now situation when working people, especially in state enterprises should wait for some months for their salary is not extraordinary, but quite ordinary situation. By 7 June 1996, wages and salaries not paid up to persons employed in central and local governments institutions and enterprises, companies with central or local government capital participation totalled 5.0 mln.lats (3.6 mln lats in manufacturing, 0.5 mln.lats in fishing, 0.2 mln. in fundamental and applied research; 0.1 mln. lats in each of the following sectors: in agriculture, transport and communication, health care and social work, in construction). (Source: Monthly Bulletin of Latvian Statistics, 1996, Nr.5, p.53). The situation in which working people are unable to receive their salary is one of the biggest denials human rights, of fundamental human rights. Article 207, which declared, that labour conflicts should be solved by Trade Union Committee, was excluded from Labour Code.

There is an agreement with Agency of Privatisation, that representative of trade unions should be in commission of enterprise privatisation. There is very weak fulfilment of agreement, concluded by trade unions, because their role is more consultative, advisory, than defensive. Nevertheless, trade unions have some success: for instance, due to initiative of trade unions some changes, favourable for employees, in Labour Code were made in 1996 concerning time of labour contract. It means, that all employees, members as well as non members, became more protected.

Negotiations between employers/employees are organised at the national level only to some categories of employees on state and local government enterprises, institutions and organisations (teachers, physicians). In firms there is not collective negotiations, only individual work contract. There is not special negotiations at the region level. There is unclear rules in industry, because enterprises are under process of privatisation now.

Section 9. Labour conditions

According to the law there is a trend towards labour time reduction. Legal labour time is 40 hours per week instead of previous 41.2 hours in 1989. However present economic conditions encourage many people to work more than the prescribed hours in order to earn extra income. According the survey made by the NORBALT Living Conditions Project data work less than 40 hours a week - 20%; work the regular full-time 40 hours week - 41%; work 41-50 hours hours a week - 19%; work 51-60 hours a week - 10%; 61 and more hours a week - 10%. (Aasland, p.121-123). Tendency towards part-time job is very popular among students, among those who are looking for extra jobs for economic reasons. But there is no precise statistics about it. There is a very strong tendency toward fixed-term contracts. Therefore on the initiative of Trade unions there were made amendments to Labour Code on March 14, 1996. Now according Art.16 employee has right to demand to turn fixed-term contracts to constant contracts on conditions that this is the third fixed-term contract with the same employer and between time of first and third contract there was not any break longer than 30 days. There is no statistics about proportion of people, working on the third fixed-term contract. Labour inspection is an official organisation responsible for enforcing labour legislation, but the effectiveness and efficiency of its work is very low. The Labour Inspection investigated 186 job accidents, including 99 resulted with death in 1994 and 224 job accidents including 76 resulted in death in 1995. I have no now direct data, indirect data are that number of deaths by injury and poisoning per 100.000 average population increased from 139.6 in 1990 to 235.9 in 1994 or 1.7 times. (Demographic Statistics in the Baltic Countries. 1996.p.42). Among specific industries exposed to dangerous working conditions according to mass media information may be forestry.

Section 10. Right to a Minimum Wage

There does exist a legal Minimum Wage in Latvia. Until the middle of 1992 the sum of living standard minimum and minimal salary was identical. July 1992 was the last time when these two sums were equal. Since mid 1992 the extent of minimal salary and living standard minimum are not connected. Already in December 1992 living standard minimum was officially established as 4440 RBL, but extent of minimal salary left the previous, 1500, or three time less. In Labour Code there exist Art.83 and Art 84, which regulate minimal salary. These articles declare, that minimal monthly salary for full time work cannot be lower than subsistence minimum which has been defined by Council of Ministers. According to legislation not one full-time employee can fall under it. Its size is smaller, than sum which is defined as crisis subsistence minimum.

Since April 1996 the minimum wage is 38 Lats (70 USD). Previous sum was 28Ls for 18 months without any changes despite on fact, that inflation was over 20% in 1995. From the employee’s perspective no adjustment of the minimum wage for more than a year has directly affected the living standards of many low-income workers for whom meeting basic subsistence needs has become painfully more difficult in an inflationary economy. In addition, not increasing the minimum wage also negative impacts on the state budget. In many businesses, employees receive the minimum wage officially and the rest of their pay, which is not reported, in an envelope. Thus, according to the data from the Central Statistical Bureau of Latvia, employees in private enterprises receive less than those working in state enterprises. The reason for this paradox is that private enterprises do indeed pay more, but report less. In short-time employees are not losers, but in long-time perspective they are losers, because very small sum of money have been transferred on their social insurance personal account. Consequently, large sums of revenue bypass state coffers and the budget suffers, as do those often hit by declining social expenditures: pensioners and other vulnerable groups, as well as the entire social sector.

Section 11. Right to unemployment benefits

There does exist the right to unemployment benefits in Latvia. But first of all we would like to explain the interpretation of the status of unemployment. Unemployment as defined by ILO does not correspond exactly to unemployment as defined in Latvian legislation. The study of work force in Latvia in November 1995 showed that there were 227 thousand people classified as unemployed according to the internationally recognised definition of unemployment of International Labour Organisation (ILO). (Economic Development of Latvia, p.52). According to the data of the State Employment Agency the number of registered unemployed at the end of November was 79.9 thousand people, or approximately 3 times less.

According to the Law "On Employment" (December 23, 1991) "An unemployed person is any Republic of Latvia citizen or resident alien (stateless person) capable of working, who has obtained a permanent residency permit or who has in his/her passport a stamp of the Registry of Inhabitants with an individual code number, is not employed, but is in of working age, has lost jobs on conditions which are beyond his control and has no other source of income amounting to at least a minimum salary, who is not engaged in any business activity, is looking for a job and is registered in the State Employment Service office in the place of residence for which he/she has a residence permit (registered in the passport) and who applies to the Service at least once a month". The most important differences between ILO and Latvian definitions are 1)that ILO definition does not specify any type of formal registration in order to fulfil the requirements for unemployment; 2)person should be without job on conditions beyond his/her control. Therefore in Latvia State statistics has two different indicators: registered non working and registered unemployed. The first is always larger, but fortunately has tendency to decrease because people are becoming more educated in this field. The discrepancy between these two figures since 1992 is showed in table 4.3.

The duties of unemployed person are: to look for job by himself and with SES help; to visit SES once per month; to arrive in SES during two working days after receiving invitation; to participate in SES organised activities (retraining courses, social work)

Benefit payment order and level since 1992 until end 1996 was as follows. Unemployment benefits were granted to people, whose employers have paid social tax for not less than 6 of the past 12 months. The total length of the period for which a person was entitled to receive unemployment benefits constituted six months of a twelve months period. The sum of benefit was not in any way connected with previous salary. Unemployment benefits amount to 90% of the minimum wage for those who have lost employment through no fault of their own. Those who have lost employment through their own fault (do not like to go on with this job, have broken work discipline etc.) did not receive status of unemployed person and any unemployment benefit. Unemployment benefit amount to 70% of the minimum wage for those have never been employed. This arrangement covered people who have completed an education and received a certificate showing their educational qualifications but who have not yet found any employment; demobilised military personnel; released prisoners; those who have been rehabilitated after disability; and women who have children from 3 to 3 1/2 years of age.

The rules have been changed in accordance with social policy reform and introduction a new contributory system in positions of benefit level and benefit receiving time. Since 1997 it depends on former salary. For receiving benefit is necessary to pay insurance contributions not less than 9 of the past 12 months. Level unemployment benefit is connected with two positions: 1)working years, 2)longevity of unemployment. I.e. your work experience is over 25 years it can not be more than 65% from average salary during last 6 months before unemployment. If your work experience is from 1 to 5 years it can not be less than 50% from average salary during last 6 months. The full sum of the unemployment benefit should be paid during first 3 months of unemployment, 80% from sum during 4th-6th months of unemployment and 60% from sum during 7th-9th months of unemployment. This sum should not be less than 90% from minimum wage. To those persons, for which unemployment benefits were 70% of minimal salary, the rules have not been changed. Benefit is limited in duration for 9 months and is means-tested benefit. Because one of precondition for it receiving is that unemployed person does not have other income equalling the minimum wage. Percentage of those unemployed who receive unemployment benefits fluctuate from 30 to 40 in different time. Look on data table 4.3 The number of registered unemployed people who received unemployment benefits declined from 82% in the middle of 1992 to 30 % in the middle of 1996, benefits expiring for a large number of people. It is noteworthy, that only those who work in enterprises that pay social security taxes are entitled to unemployment benefits. According to NORBALT survey data, in 1994 only one in five of those classified as unemployed according to the ILO definition receive unemployment benefits. (Aasland, p.138). The strict eligibility requirements for such benefits are probably the main reason why so few people receive them, something which also explains why a relatively small proportion of the unemployed bother to register at the local employment office.

There is no data, what percentage of long-term unemployed receive unemployment benefit. According to legislation this number should be zero. Only opportunity for long-term unemployed (which were unemployed longer than one year) is to participate in paid social work 9 months as minimum. In such way social tax has been paid for them and they can receive benefits during next 9 months. This opportunity is very important from social inclusion point. In such way persons do not feel themselves as excluded from society, social tension has been reduced partly, unemployed receive some material resources for their life. Besides it, temporary employers (pansionats, schools, hospitals, share companies, business men and c.t.) have an opportunity to watch and evaluate workers. As result one part of employed in temporary work became constant. There is no official statistics data about the number of such persons.

Paid temporary social works are financed from employers. According to the Law "About Local Governments" local governments can stimulate employers to invite unemployed persons by reducing taxes. Unemployed persons should receive recommendation from local employment office for such jobs.

Section 12. Right to a guaranteed minimum income

There is no right to a guaranteed minimum income. Such right exists for elderly and disabled persons only. Work-age person can apply for social assistance benefits on very strict conditions on base of income declaration per family member (look social protection part). Share of unemployed among recipients of social assistance in 1995 was 12%.

Level of unemployment significantly differs in different regions and cities and varies between 2% in sea-port Ventspils and 27% in eastern city Rezekne. The most complicated situation still remains for four years in regions and cities of eastern part of Latvia, Latgale, where level of unemployment is higher than 20% during three years.

V - EDUCATION 

In June 1991 a new Law on Education was adopted in Latvia. The law called for equal rights to education for all inhabitants of Latvia, gave schools freedom in organising the teaching process, and granted autonomy to institutions of higher education. An amended version of this law is still in effect today, but it is no longer capable of serving as the basis for reform of the education system. In 1993 work began on drafting a new law on education, with special attention to restructuring the system according international standards and Latvia's treaty obligations. In summer 1995 the Cabinet of Ministers approved the Education Conception and at year's end submitted to parliament the new draft law, which is proposed to be the core legislation underlying the educational system, but has not been adopted by parliament until February 1997.

1) Illiteracy and lack of basic educational qualifications

Latvia has had high levels of educational attainment since the end of the nineteenth century. Adult literacy rate in 1995 was 99%. This percentage remained stable during the past five years. There are no any regions in Latvia, where the percentage of illiterate adults is significantly above the average for the whole country.

The latest official data on the level of education in Latvia were provided by the 1989 general census. According to this census, adults with less than upper secondary education (as % of age 15+) constituted 39.6%. 16.7 % of the population of 18 years or more had a primary education or less (3.4% persons were without any educational qualification). Those with a lower secondary education accounted for 21.1 %, while 47.8% of the population had general secondary, specialised secondary (including vocational) or incomplete higher education and 14.3 % had higher education.

In Soviet time in 1976 compulsory upper secondary education was introduced. Since 1991 secondary education is not compulsory, some youngster start working and do not complete the upper secondary level.

Only a small proportion of them attend part-time schools, which were very popular in the 1980s. The enrolment in secondary school classes had fallen from 9.800 in 1990 to 6.400 in 1994. The level of education of the two basic ethnic groups (Latvians and Russians) is very similar.
A lot of vocational schools linked directly to industry have been closed for the beginning to reduce enterprise costs later due to collapse of industry.
There are no any special programmes for adults without basic educational qualifications.

2) School drop-outs

The highest drop-out rate exists in the last years of basic school. 6.2% of pupils in the ninth grade dropped out in 1994/95. (Latvia Human Development Report, 1996, p.71).

An alarming trend in education is the falling percentage of children who have acquired a basic education. In 1990, 90.1 % of all 15 year-olds had completed basic education, but in 1994 this percentage had fallen to 79.3 % and in 1995 to 76.7 %. The authors of chapter about education in Human Development Report 1996, who are from Ministry of Education, explained, that this does not, of course, mean, that only 76.7 % of children complete their basic education. Some school children repeat a year (see table 5.1), so it can be expected that they will complete their education in subsequent years.

Schools are not interested in accommodating those pupils who are older than 15 and are thus no longer considered to be of school-age in accordance to Education Law 1991. Teachers have small salary, should have more hours and have no time for individual work with them.

There is no any special analysis of this groups. Only on base of publications in mass media we can conclude that they are coming mainly from vulnerable families (alcoholics, single parents) and families with low income per capita.

New Education Bill project (not accepted yet until February 1997) includes the rise of school-attending age to 18;

There is no any special programme for prevention of school drop-out. Partly as prevention measure we can consider the new government approach to financing schools (basic and secondary) in accordance with pupils number.

The mechanisms of re-integration into school of pupils who have dropped out of school does is undeveloped in present Latvia. In soviet time there were special schools in which such kind of children were educated on basic level. In 1993 such establishments were abolished due to many negative moments in their work (mainly, children's rights abuse). Special school for those who drop out started in autumn 1996 in Riga. There is network of part time schools: 38 schools with enrolment 9881 in 1995/1996.

In September 1996 when the new academic year started NGO “Save the Children” appealed through mass media to neighbours asking them to inform organisation about cases, when children do not attend school. Some of such cases were reported in daily newspapers. Parents explained such situation with the lack of money for books, copy books, pencils etc. According to law primary and secondary education is completely state funded. But in reality it does costs for parents to educate them, especially in the beginning of the new year. So called school money for daily needs of educating process is quite ordinary phenomena.

3) Lack of any schooling

Nobody in Latvia knows precise data, what is the number of children and young people, required to attend school, who have attended school either, never, or only for a very short time, or very irregularly. As Antons Seiksts, the head of Parliament's Human Right Commission said: "Today situation is such, that we do not know, how many children in our state are not attending school. When I asked about it in Ministry of Education and Science, I have received the answer: "Sorry, it is not in our competence" (Weekly "Izglitiba un Kultura, 1996. gada 29. Februarys).

According to data from the State Education Inspection Board, currently about 2.500 school-aged children are not enrolled in school (i.e. miss more than half or an entire school year). This does not reflect the real situation, as this includes only registered school-age children. There are also school-aged children in Latvia now who are not registered at all. The difference between the number of persons born in 1981-1987 in Population Register and number of person registered in schools (born in 1981-1987) is more than 10 thsd, or more than 4% of children in this age. Illiteracy is becoming a topical problem together with growing number of excluded people.

There is no any special programmes for preventing the problem of children and young people having no schooling. There is draft of Rules of Cabinet of Ministers concerning this issue. These Rules suppose accounting of all school-age children and schools in which they are registered and following their moves between schools during their school-age time. Local governments should be responsible for schooling them.

4) Compulsory schooling

Government-run educational institutions offer primary and general secondary education free of charge. Currently in higher education the old system of free tuition and student stipends still operates.

Compulsory school attendance is required for all children and young people in the country independent of origin, social background, citizenship etc. But the implementation of this law is only on parents responsibility.

According to the legislation children start attending school at 6 to 7 years of age, the minimum compulsory duration of schooling is until completion of 9-year basic school or until the age of 15 is reached. The main choice after completing 9-year lower secondary is between the general secondary, vocational secondary or specialised secondary education. A new draft of Bill on Education has idea to prolong the age of compulsory education until 18 if person has no graduated lower secondary school.

Parents should pay penalty 50 Lats(94 USD) (Sum is close to crisis subsistence minimum in present Latvia) if their child does not attend school. But these families have no any money for penalty as a rule. It means, that this law like many others is applied in practice very weak.

There is no any regulation in law concerning school attendance in cases where the parents are illegally resident in the country. In accordance with Larvia's legislation all persons which have not code in register are considered as illegal residents. The permission for children and young people to attend schools is on local authorities responsibility. As a rule those children have birth certificates. The Department of immigration and naturalisation is strongly following to such cases. The special situation since 1994 until end 1996 was with illegal curd refuges. All families were located in one place in Olaine (20 km from Riga). Those adults between refuges were responsible for their children education by themselves. In the end of 1996 refuges received permission to go to the Scandinavian countries.

5) Exclusion from school

Schools themselves can exclude pupils for disruptive behaviour, for bad success in studies. There is a big autonomy for school in this area. More often such exclusion is forever, not for few days or several months. This situation is overlapping with school drop-outs. The recent trend in numbers excluded from school by the school themselves risen. The most affected age is over 15. For instance, "low academic achievers" constituted 23.6% of those excluded from last (9 class) year of basic school, 24.2% of excluded had formulation "age over 15" in 1994-95. (Latvia Human Development Report 1996, p.71). No any special investigation about this problem was done until now.

6) Non-formal education

Latvia has no any non-formal education in definition used in questionnaire.

Children and Young people with special educational needs

There is special education system for children with mental and physical illness. The special commissions have sent pupils to these schools, where during 12 years they should learn basic school programme. In 1995-96 there were 60 such schools and 58 special classes in normal schools with more than 9 thsds. pupils. Very serious difficulties are created by fact that contingents in such schools are becoming more heavier with each next year. Near 70 % of children have not only one, but more defects.

7) Education of children and young people at risk of social exclusion.

Latvia has two school sub-systems, each with its own language of instruction. In 1995 60.4% schoolchildren attended Latvian language schools, 39.1% - Russian language schools, 0.5% - non-Russian minority schools. (Latvia Human Development Report 1996 p.73) There are schools for national minorities with Polish, Ukrainian, Jewish and Estonian languages and classes with Estonian, Lithuanian and Belorussian languages. In order to encourage the process of establishing the minority schools and to put this process into some institutional framework within the Ministry of Education the Office on Minorities Education has been set up in 1990. But it was liquidated in 1992. In February 1996 13 prominent Latvia's intelligentsia representatives have signed an "Appeal" to the President of the Republic of Latvia. They have expressed their worries about the way Latvia treats its ethnic minorities. President Ulmanis after his re-election in June 1996 has constituted the Consultative Council in ethnic problems with aim to listen and to hear opinion from all groups of Latvia's multiethnic society. As I have written in chapter 1, Latvia has no nomadic people.

As special measures for children and young people belonging to families threatened by social exclusion we can mention free meals only. On January 1996 according data of Ministry of Welfare 186 thsd. children have received free meals in school and kindergartens.

There is no any special institution that deals with the phenomena of social exclusion in the educational system in Latvia. There is no any regularly published report about phenomena of social exclusion in the educational system too. But special children’s courts were established in 1995-1996 in administrative units of Latvia. Riga joined the rank of other Latvian cities in establishing a children’s court only in January 1997. Although the law was established In 1995 and left up to the local governments to implement, it was delayed several times because it simply was not realistic. The local governments did not have funding. The children’s courts deal with such issues as adoption, guardianship and inhabitancy and registration issues. They in some way replace the old system of children’s rights inspectors who went from house to house to check on children who could be in danger. In dire situations, the children were taken to a shelter, but within a few days usually ended up back at home. Nevertheless institution of children’s right inspector exist too.

Riga joined the rank of other Latvian cities in establishing a children’s court only in January 1997. Although the law was established In 1995 and left up to the local governments to implement, it was delayed several times because it simply was not realistic. The local governments did not have funding. The children’s courts deal with such issues as adoption, guardianship and inhabitancy and registration issues. They replace the old system of children’s rights inspectors who went from house to house to check on children who could be in danger. In dire situations, the children were taken to a shelter, but within a few days usually ended up back at home.

Another institution, which deals a lot with children’s right is Latvian National Human Rights Office. Office’s functions by law include holding seminars and educating the public on topics such as children’s right. The Office helped train 140 employees countrywide in the legal rights of children. In 1997 book about children’s rights was published in Latvia.

8) Educational qualifications gained in other countries.

There is not full clarity concerning educational qualifications gained in other countries. The rules are under establishing. In Latvia does work diploma’s nostrification procedure. For instance, in 1992-1993 all persons with degree of Dr.(there were 4926 such persons in 1987) or Dr.hab.(422 in 1987) had to go through procedure of nostrification and to approve once more their qualification to specially formed for these purpose councils. There were no published any official data about number of those who did not participate in this procedure (partly because there were no enough councils for all specialities) or who failed. A priori this procedure did not created problems for persons represented natural and technical sciences and became obstacle for some representatives of social science and history due ideological reasons.

Now the procedure of recognition is the result of comparing educational certificates made by professional organisations in case if there is no signed agreement between Latvia and state from which person is coming.

9) Vocational training

Special measures of vocational training have been organised by State Employment Service for unemployed persons and other persons, which have been registered as non-working for different time from some weeks to 6 months.

10) Other measures to combat social exclusion

There are no any precautions taken in order to prevent those jobs without any special qualification requirements from being claimed by better qualified persons. Special educational measures are not proposed and realised for groups threatened by social exclusion.

11) Pre-school education

Significant changes have taken place in the pre-school education since 1990. According to the new concepts the leading role in the pre-school education is given back to the families instead of kindergartens. While 83% of all children in the relevant age group attended pre-schools before 1990, in Autumn 1995 the corresponding figure was only 54 %. If in 1989 there were 1200 kindergartens, than in 1995 -608 (some improvement from 1991, when there was only 520 kindergartens. Many pre-school facilities are now being utilised for purposes other than education (sold to businesses, etc. This process is still taking place, as municipalities lack adequate funds to renovate buildings and furnish them to accommodate pre-schools. Currently about 8.500 children are waiting to be admitted to pre-schools.

The distribution of kindergartens in rural areas is unsatisfactory and some districts have no kindergartens at all. Among the most important reasons for the cutbacks is the closing or reduction of the activities of the industrial or agricultural enterprises that owned them. Day care fees climbed from an average of 4 % of an average industrial wage in 1990 to 10 % in 1994. Families with few economic resources have less opportunity than others to send their children to day care facilities. NORBALT survey data about 1994 showed: more than half (53%) the households with children in the 1-6 year age group in which income was limited to wage income had at least one child in day care. In households relying on some form of social support, the corresponding proportion was 17%. (Aasland, p.98)

Low kindergarten attendance is one of the more disturbing trends in the education system. Families, especially those poor families, families of alcoholics cannot prepare their children for normal integration in society. In soviet time kindergartens have week-time groups for children from such families, children have prepared to school and have received regularly their food. It is too short time to evaluate the consequences of new situation, which will be evident only some years later. From our point of view lack of opportunity to visit kindergartens contributes to increasing number of children which are not enrolled in schools. But I have no data approving my hypothesis now.

VI - SOCIAL PROTECTION 

1) Legacy of Past in Social Sphere in Latvia

After annexation and incorporation in Soviet Union in 1940 Latvia has experienced the common model of USSR social policy: standardisation of protection and its extension to all workers, integration of social insurance into State budget, centralisation, disappearance of the unemployment branch, and separation of medical care from social insurance following the creation of universal health services. Benefits were provided in respect of all the social security contingencies detailed in Convention No.102, 1952, of the International Labour Organisation dealing with social security minimum standards. The exception related to unemployment benefits, which did not exist.

Social security system did provide benefits in one contingency, paid leave for child care, which took account of more recent standards than those indicated in Convention No.102; they were provided in line with Recommendation No.165, 1981, which relates to workers having family responsibilities. Pension age was relatively low: 60 for men and 55 for women. Private complementary schemes did not exist. Pensions caused few worries for people’s future; they were relatively high and inflation didn’t exist. An average old-age pension in the 1980s could be close to an average starting salary. Pensions were actually high enough to survive on.

Health care was free of charge. Basic commodities and services such as food, shelter, heating and transport were largely subsidised and available at very low cost.

The Soviet system of welfare was paternalistic. A very important issue was the absence of rights to articulate and to lobby for needs autonomously from below. Welfare recipients were objects of welfare provision and never active subjects in defining needs and in running services that met needs. Salaries and wages were low and many people were dissatisfied with quality of services and total deficit of goods.

Such was the legacy and background for making social policy after renewal of independence.

Constitution of Latvia has no chapter about person's rights and duties. Therefore the Constitutional Law "Human and Citizen's Rights and Duties" was accepted in December 1991. Despite of tittle "Constitutional" this law was accepted as ordinary law, but not according special procedure (required for constitutional law) and therefore it has no any priority to other laws. Article 27 of the Constitutional Law guarantees: "Everybody has rights of material security in old age, illness, full or part losses of work capacities". Article 37 declared, "that everybody has a right to medical services. The State protects the health of the population and guarantees to everybody the minimum of medical care, which is defined in law".

The main changes in institutionalisation of social security in Latvia were connected with building two important network: employment service and social assistance service. In February 1992 Government had recommended to local authorities to establish social assistance structures. Their main tasks was to gather data about people who are in need, to help disabled and elderly people at their homes, to take care of the elderly and disabled, to provide and distribute humanitarian aid. In 1995 Latvia had 38 social assistance services with 611 social assistance workers in 58 towns and 166 local units. (Latvijas Vestnesis, 1995.g. 22.novembri).

2) Social Welfare Reform

With the adoption of comprehensive social security legislation in autumn 1995 the Parliament and government made the creation of a financially strong and independent social security system a high priority. The package of social welfare legislation passed in 1995 includes seven laws on:
- Social Assistance;
- Social Security;
- State Pension;
- The Social Tax;
- Illness and Maternity Support;
- Mandatory Social Insurance for Unemployment;
- Insurance For Work-Related Accidents and Illnesses

Social reform includes quite radical short, mid and long term changes for employed, turn from paternalistic expectations towards personal responsibility for social welfare.

Latvia undertook a far-reaching pension reform. The reform is gradually replacing the “pay as you go” system with a new three-tier system:
- The first tier will provide modest state pensions, the level of which would be partially determined by contributions, but will include a minimum government-provided pension.
- The second tier will be a fully funded mandatory contribution scheme.
- The third tier will consist of voluntary private pension arrangements for those who wish and are able to afford a higher level of old-age and disability protection.

The first tier has already been introduced and all social tax payments made by employers and employees are credited to individual accounts, where interest is accrued in line with the average growth of wages. Upon retirement, annual pensions are paid according to the accumulated balance divided by the average post-retirement life-expectancy.

The new (1995) pension legislation resulted in sharp decline of pension size to those becoming pensioners in 1997-2001. Because all their previous salaries and wages until 1996 have been ignored. If their salaries in 1996 and after are less than average in country they can receive after reaching retirement age only state social allowance sum 25 Ls (44 USD), which is only 66% on very modest average sum of pension in 1996. It means that legislator ignored the interest of persons who are becoming pensioners in transition time from one pension law to another and who have income under average in the country. This group of population (approximately one hundred thousand persons: men born 1937-1941, women born in 1941-1943) have been initially pushed in worse conditions then previous generations and generations after them.. According to present legislation there is right to apply for pension if women is 55 years old. 78 women, which were unemployed in 1996 and were not longer than 6 months entitled for unemployment benefit, in January 1997 applied for pension. But they are receiving only few lats large pension (15-18 USD), because minimal salary has taken as basis for accounting their pension.

There is unequal approach to citizens and non-citizens accounting their work period for pension. The new legislation accounted as valid for pension only those work years, which non-citizens have been worked in Latvia, but not in other area of former USSR. Parliament in January 1996 refused to recommend to its Commission to make the evaluation of number of those persons who will suffer from such injustice approach. Positions of national radical parties were predictable. Here the crucial role in such result of voting belonged to position of liberal pro-European party Latvian Way, which members restrained from articulation their position. Concerning citizens all their work years are considered as valid despite of country you have worked: USSR, USA, UK, Australia, New Zealand etc. This new order of accounting sum of pension started only in January 1997, therefore it is too early to evaluate its effect.

Social policy reform declared the right for person in need to receive means tested assistance from state or local authorities on very strong conditions, which are described in social assistance part of this chapter.

Section 1. General data

Social protection budget including social assistance budget made 11.6% in 1994 of GDP, 12.3% in 1995. Social assistance budget was 3.0% of GNP in 1996.

1) SOCIAL PROTECTION SYSTEM

Latvia has system of public social security. It is organised on national level mainly. Local government benefits are a component part of the social security net. The objective of these means-tested benefits is to provide the necessary assistance to the individuals who are not able to integrate or reintegrate in the labour market and who do not have adequate means of subsistence, based on assessment of the individual situation. There are small domains of social security, which are managed by non-state (private) organisations. These are charities and religious organisations.

2) FINANCING

The main financing sources are coming through social tax payments: 38% in 1996 (33% for employer plus 5% for employee). During the social policy reform social tax should be reduced to 33% and gradually changed to 18% for employers and 15% for employees in 2001. These contributions are collected on national level. Each person has his/her own account in Social Insurance Fund. The public-financed part of the social security system is funded from general taxation only

3) RISKS COVERED.

Payment of social tax gives the person rights to age pension, disability pension, provider's loss pension, disease benefit, maternity benefits, unemployment benefit, funeral benefit. All kinds of risks coverage since the beginning of reform in 1996 are closely connected with social tax payment. Temporary disability risk in 1996 was paid for 100% from insurance system. Since 1997 temporary disability risk is paid by employer for the 2- 14 days from the beginning of temporary disability; since 15th day from insurance fund. The extent of benefit is 80 % from average salary. Since 1997 flat-rate unemployment benefit was turned to connected with former salary benefit. The duration of receiving it was prolonged since 6 to 9 months.

2) BENEFITS

There are no benefits, which are managed by private providers. Flat-rate benefits are those benefits, which are not connected with previous salary and are not means-tested. In case of Latvia the government pays one-off grant upon birth of a child, which is based on calculation of the value of the set of items required by a newly born. Regular state social grants comprise grant for nursing of a child up to age of 18 months and from 1.5 to 3 years and benefits for children up to age 15 (until 18 if they are in education system). Children benefits are universal, not means-tested. There were some changes since January 1997 stimulating birth: family with one child receives - 4.25 lats (7.8 USD. This sum for second and fifth child is equal to 1.2 of the sum, but for the third and fourth child is equal to 1.6 of the sum. The government provides a regular grant to guardians to compensate subsistence of the child and to remunerate for performing the duties of a guardian.

State social allowances are paid to the persons who have reached retirement age, disabled or persons who have lost a supporter and are not socially insured. In 1997 more than 11 thousand person are receiving the state social allowance. Amongst them 32% due to old age, 60% due to disability, of which 45% are disabled since birth (mostly 1 and 11 category of disability) and 8% due to lost supporter.

Funeral grant to those uninsured persons is equal to 2 amounts of a state social allowance. In 1996 the state social allowance corresponds 50% of average income per one member of a household.

Definition of the unemployed which is used for eligibility for unemployment benefit in case of Latvia has been described in chapter 4 section 11. Risks which are not covered for the unemployed people include many positions. First of all after nine months of receiving unemployment benefit they have no any legal income support. They have right to apply to local government for poor family benefit for three months and for accommodation grant. However the local governments do not ensure complete implementation of the Requirements issued by the Cabinet of Ministers. They pay out their grants within the limits of their own budget. Therefore there is large risk for the unemployed person and its family, if there are not other providers, to leave without any income and to become homeless.

Claims concerning right to benefit can be brought to a court of law. But it is mainly theoretical opportunity, because it is quite expensive procedure even for employed persons.

Different types of benefits.

There is cash benefit for sickness and disability. This benefit is insurance based and non means-tested.

The government provided a regular grant to compensate transport expenses of individuals who have difficulties of moving. The amount of the grant was equal to one minimum month salary in half of year. Until April 1997 disabled persons could use public transport free of charge. In 1997 the sum of mobility allowances per person has to be redefined in order to reduce it. The mobility allowances for disabled persons were not means-tested.

Retirement pensions can receive all aged persons. Retirement pensions are not means-tested. Those elderly who have work experience less than 10 years can receive only constant state social allowance since 65 or 5 years later than official pension age. It can be considered as minimum income for the elderly. This benefit is not means tested.

There are benefits for birth and death, which are non means-tested. Benefits for births have been changed in accordance to price index by Cabinet of Ministers in such way that new parents can buy things of first minimal needs for child. Death benefit is equal to average month salary of dead person, but it has to be not less than three minimal wages (Maternity and decease benefit law, article 23) in case of insured person death. In other cases funeral benefit is equal to two months state social allowances.

There are cash benefits for work-related accidents and illnesses. If there is constant disability and loss of capacity to work, than disability benefit depends on degree of disability. But in any case it is connected with insured person month salary from 100% in case of 80% disability to 25-49% in case of 50 % disability and to 10-24% in case of 30 % disability and with lamp-sum paying.

There are not war pensions. But there are special payments for persons which were politically repressed during occupation regime, both Hitler and soviet. These benefits are not means-tested. The number of years which these persons had spent in exile (mainly in Siberia) should be accounted for sum of pension according formula one year is equal to five.

There are not housing benefit as such. There is right to appeal for accommodation grant to local government, which can be provided as means-tested. Conditions, upon which person can receive it, are described in next part of this chapter.

Social Assistance: are there minimum incomes guaranteed by the state?

From the early beginning of 1990th there was trend to have minimum incomes guaranteed by the state. In April 1992 with the Common Decree of the Supreme Council and the Council of Ministers crisis subsistence minimum was introduced. In crisis situation Latvian Government's main priority in social policy was to provide living standard minimum to disadvantaged groups: disabled, pensioners, children. Minimal pensions and all kinds of benefits were periodically increased. For instance, living standard minimum during 14 months since April 1991 till June 1992 had been increased for seven times from 190 to 1500 RBL.

The order of receiving social assistance benefits was not constant, it has been changed many times during recent years. In winter 1992/93 a special system of social assistance started: kitchens, talons for receiving soup or food, pensioner's talon's for heating payments. Since 1993 everybody who needed help had to form special declaration about his income. If his income was lower than official standard of living than local authorities had to pay necessary sum of difference. 50% percent of this help had to be provided from state and social budget. Families in Latvia could receive the status of poor family since the end of 1993 according to the rules Nr.19 of Cabinet of Ministers from November 18, 1993 "About procedure, in which family can be recognised as poor" (Latvijas Vestnesis, 1993, 116.nr.). In 1993, November 18 Council of Ministers reduced the extent of help, declaring that rights on receiving benefits had only person, whose income is lower than 75% of food part of crisis minimum. There were some features moving to the distinction between the "deserving" and the "undeserving poor" which is a cornerstone of the minimal welfare state.

But two and half years later even such form of income guaranteed was recognised by state as too large, over state capacities. Therefore the new, more strict order of receiving social assistance was established since 1996 May. According to this order person should appeal for help and should declare his/her incomes by fulfilling questionnaire on 13 pages titled "Declaration about subsistence (living) means". The office of social assistance has the duty to keep the confidentiality of information and to test the authenticity of it.

There is no any information and no any accounting about those persons who have appealed for assistance but has not received it. For the first time in 1996 rules determine the time (one month), during which social assistance service should give the answer and to inform person in written way.

According to 1996 rules, family can be evaluated as poor, if there are following 5 conditions:

1. The income per one family member is not larger than 75% from crisis minimum during three months;
2. Family has no money sum, which is larger than 200 Lats (370 USD);
3. Family has no any property, which value is more than 3000 Lats (5.555 USD);
4. Family has no provider, who is capable to provide it;
5. Family has no signed any contract of providing with somebody, who can later receive their property. Furniture in flat and clothes are not considered as property.

There is special part about estimation providers' opportunities to provide dependent persons and cases when he can be considered being free from this duty. The provisions of the 1937 Civil Code are currently effective in Latvia, and they determine not only the responsibility of parents for upbringing of their children, but also the responsibility of children for providing subsistence to their parents. This implies assistance only in those cases, when the children are not able to provide help due to officially proved low level of income. Legislation rigidly restricts the categories of individuals who may claim the poverty benefit without any room for variation of more flexible interpretation.

There is very strong regulation concerning sum of social assistance benefit. The sum of social assistance is divided in two parts: basis and additional. Both of them are fixed. Basis sum has to be paid in conditions if the income per family member is less than 12 Lats (22 USD). It means, than basis sum is accounted as difference between 12 x np - Ip (where "n" is number of members in poor family and "I" is total income of poor family.

The additional sum (not larger than 9 Lats (17 USD) per family member) has to be paid only as payment for rent of poor family and only as difference between the real expenditures for rent and that part of family's members income, which is larger than 12 lats per capita.

The special minimum of expenditures for rent is defined in these rules. This minimum includes annual norms for gas (except gas heating and water warming) -8 m³ per person, electricity - 30 kW/h per person (for month), room space 18 m² for first person and 12 m² for any next person (except cases when single person is in flat: than 30 m², and if there is person with chronic disease), for coal 1 ton per person, but not more than 4 tons for family, for fire wood - 2 m³ per person, but not more than 8 m³ per family. Normative for coal and fire wood for single person can be the same as for family. Minimum norm does not include payments for phone, TV antenna and using of radio network.

The benefits should be accounted with the data of request. All documents on each poor person should be kept during three years after end of payments. The number of social workers is not enough for reaching every person in need. On the 1st January 1996 social security worked in capital Riga, all 6 largest towns and in all 26 regions.

The number of lower administrative units was 565 in 1996. Social assistance service or employed social worker was working in 252 of them (44%). Number of people employed is 621 (on population of 2.5 million). In 1996 more than half of the municipalities had not employed social assistance worker nor social assistance service has been created. The situation was even worse because of the fact that in regions with the largest social problems, where the level of unemployment was 2 -4 times higher than average (in some of them unemployment has stabilised on level of 20%) the number of social workers was below the average. In regions of Preili and Aluksne it was only 10%, Ludza - 15%, Rezekne - 18%, Balvi - 19%, Liepaja - 19%, Gulbene - 21% and region of Kraslava - 23%.

Information about clients has been collected in 234 municipalities and towns (41.4%). 45 municipalities and towns have computers. Database about clients has been created in 32 municipalities. These ways of keeping information allow to get information about changes in client's situation over longer period of time. In remaining municipalities the only source of information about client was collected applications, declarations or lists of paying. 10 county social assistance services have computers (38%) and 7 of them have databases (27%).

According legislation the help should be given only to this person who is asking for such help by him/herself. It is not official duty of social workers to look for such persons specially. They has done it only in case if they have received special message about person in need from his/her neighbours, for instance. After receiving such requests the local government commission has to estimate, what kind of help would be better in any concrete case: to give some food, to give opportunity to receive meal free of charge, to pay money to school for children launch, to pay debts of rent, heating and communal services or to pay in cash.

The sums of this social assistance benefits can be over this minimum if local governments are financially capable. But person can receive nothing if local government has not resources.

So we can conclude, that there is the official minimum income allocated to families. The basis amount of it is 22 USD per family member for food and additional amount is 17 USD per rent per capita. But the fulfilment of this guarantee depends on local government’s budget. It means, than in reality there are minimum incomes guaranteed for disabled and elderly people but there is not minimum incomes guaranteed by the state to person in work-age, if this person has no right to unemployment benefit. These guarantees are completely on local government responsibility.

Who is entitled to these minimum incomes?

There is nobody automatically entitled to minimum incomes: either nationals or non-nationals. As I have mentioned in section “Benefits” there is state social allowance (25 Lats or 45 USD) for elderly people and special pensions to handicapped persons. The Department of Social Assistance is responsible for these allowances at national level.

The Law "About Social Assistance" regulates the conditions for receiving social assistance and defines groups of population, who can apply for them. According to article 34 the working age persons have right to appeal for social assistance benefits only if they have registered in State Employment Service local office and are ready to fulfil social work or attend retraining courses. In opposite way they cannot apply for social assistance and it is their responsibility only, how they can manage in such situation. Employed person has not been registered in SES for receiving social assistance benefits.

Law “About Social Assistance” Article 35 defines limits for receiving poor benefits. Social assistance benefit is not allowed to pay to working age poor person, if he/she:
6. has left her job on own will or due to own guilt. Such working age person can appeal for any social assistance benefit only after 6 months being unemployed;
7. has refused from proposed work place or from social work;
8. has rejected participation in retraining activities;
9. has neglected himself/herself from measures of medical and social rehabilitation.

In the structure of local governments social assistance beneficiaries in 1995 dominated pensioners and disabled persons (42%), the share of unemployed and families with three and more children was equal (12%), single parents share was equal to 9%, families raising a disabled child (2%) and other groups of population 24% (Source: Daily “Neatkariga”, 1996. gada April, 24). Average sum of benefit was equal to 10.6 Lats, or 19 USD per one beneficiary. The main reason, why persons turned for assistance was incapacity to cover rent and heating (42.3% in 1995).

The civil servants from Ministry of Welfare are using such methods to make some forecasts about the number of poor in Latvia. According to their evaluation the number of such person was in 1995 540 thousands, or 21% from total population. The method of accounting the persons in needs is quite simple. There is known precise number of non working pensioners and non working disabled persons. Specialists from Ministry of Welfare suggest, that 25% of them can be poor. Such empirical calculations are based on the number of lonely pensioners and on the fact, that average sum of pension is close or even less than official amount of crisis subsistence minimum.

100% of registered long-term unemployed are considered as belonging to poor too. The accounting includes all families with 4 children and 80% of families with 3 children. According to this method of accounting per cent of vulnerable person, the best regions were capital of Latvia Riga (13.3) and seaport city Ventspils (14.5), the worse regions have indicators over 33%. These data are not constant. It depend on changes in minimal salary, pension indication and so on. The same data (more than 20% with very low income per capita) were received in households budget survey preliminary data in 1996.

There is not any accounting of non-take-up of benefit by persons who are entitled to the benefit. Because, as I have mentioned before, there was not even accounting of number of those who did apply, but did not receive social assistance. The reason was not lack of right, but lack of resources of local governments. Those who have parents or children which are over social minimum even has no right to appeal for social assistance. Those persons, who are entitled to receive non means-tested benefit, predominantly receive them. But there are persons whose human dignity suffers from necessity to declare publicly their poverty and they try to escape this procedure as long as it is possible. Many persons are not applying for assistance because do not hope to receive it.

There are benefits which take a “workfare” approach. So called public social works belong to this category. In return for the benefit the recipient, mainly long-term unemployed and sometimes simply unemployed, is under local government induced compulsion to perform work at below the market or normal wage for that work. Public opinion in country does support such approach.

VII - CONCLUSIONS: SOCIAL EXCLUSION IN LATVIA 

Latvia’s population is strongly affected by the political, economic and social reforms taking place during the period of transition. The sharp decline in GDP (for 50%) was accompanied by the rapid decline in living standard, which has occurred in 1992 and has not overcomed until the end of 1996. Real wages and salaries of employed persons in the economy of Latvia in 1995 were 54.7% to 1990 taking into account consumer price index. (1996, Statistical Yearbook of Latvia, p.88).

Inflation in 1992 reached 958% and it wiped out all the savings of the population, including savings intended to provide subsistence in old age. price stabilisation was ensured by strict monetary, income and financial policy. Since 1991, when the government subsidies were significantly reduced or discontinued (government limit on the rent rates was still effective from June 1993 till January 1996), full or very high commodification level of the goods and social services essential to the everyday day life of population (food, health, energy supply, education, communication) has been a characteristic feature of the government policy. Banking crisis in 1995 swallowed about 40% of all the deposits if individuals in Latvian commercial banks. The official unemployment rate is 7.3%. Within the country, however, there is significant level of hidden unemployment and about 18% of the population are looking for jobs. Among the registered unemployed the percentage of long-term (more than one year) unemployed is 28% of the total number of unemployed, and this figure has a tendency of increasing. As a result the actual and justified demand for services and benefits provided by the social assistance system is very high and goes over the limits of the possibilities of the system.

Therefore there is trend from government to define lower poverty line, until one defined in 1996 includes only 12 Ls(22 USD) per capita for foods and clothes and 9 Ls (16 USD) for member of households for accommodation and payments.

Poverty is not more a problem, but became daily situation for at least 20 percent of population in situation when 60 percent of households belong group of low income.

Health statistics show the deterioration of health, sharp decrease in life expectancy (3.4 years for men during six years 1990-1995), rapidly increasing number of suicide among men, especially in rural area. Nevertheless health issue had never been on parliament agenda since the renewal of independence. Until now there is no clear model of health concept in Latvia.

Growth of inequality is going on. Gini coefficient for Latvia was 0.40 in 1993 and 0.42 in 1994.
Insecurity is a characteristic of many people in Latvia, regardless of their employment status today. Many of those who have jobs are afraid of becoming unemployed.

Threat of exclusion from housing is another serious reason of for feeling to be in insecurity. Deprivation of heating, hot water supply is becoming ordinary for many people in urban area, especially Riga. Courts are overcrowded with evictions cases.

Nevertheless very few people who are integrated in the labour market suffer from a severe lack of socio-economic resources. The vulnerable groups are found among the unemployed and those outside the labour force. (Aasland, p.200). Hence the big gap is between those who are integrated in the labour market and those who are not.

As regards people outside the labour force, it is those living on their own and those who are single providers with dependent children who are most at risk.

Single adults without children if he/she is outside labour market is in a dramatically bad position. Latvia has no minimum income entitlement for adults able to work but without an income. They can apply only for means-tested social assistance for three months on conditions that they fulfil some work. But in many cases they are refused in such assistance. Government’s support to single providers with children makes their situation little better.

Unemployment is often just a step on the road to permanent exclusion from the labour market. The absolute number of long-term unemployed and the share -term of long unemployed among unemployed is constantly increasing.

Age according to NORBALT survey data is the most important background variable. People in the 18-30 age group have a greater share of privileged individuals than any of the other age groups. Young people who are more flexible and who find it easier adapt to changes, seem to enjoy the best living conditions in Latvia today. (Aasland, p.214)

Transfer incomes (pensions, social security, etc.) are usually not large enough to compensate for the lack of earned income provided by employment.

Number of pensioners in Latvia in 1996 was 654.000 or 25% of the total population. Per cent of population aged 60 and over is increasing from 17.4 in 1989 to 19.1 in 1995. As a group. pensioners have a high proportion of vulnerable people: 44% (Aasland, p.212). Usually those who are 60 years or more suffer the most serious socio-economic deficits. In 1995 the growth in the average size of pensions did not keep pace with inflation, thereby leading to a decline in pensioners’ living standards.

Single providers with dependent children are in better situation than pensioners, but they are still over-represented among the vulnerable. Compared with other households with dependent children, the difference is large.

Naturally, the most vulnerable people are those who have only attended primary school or less. Therefore some symptoms of potential decrease of educational level among teenagers is cautious.

Children who are outside school and whose number until now is not clear for officials is on agenda in mass media. But until now there is no full clarity about division of responsibility for them among largest state branches: education, ministry of Interior and Ministry of Welfare. This issue should come government agenda. In opposite case it will create a lot of problem for country in nearest future. Because children have no their own voice in society. But elderly have.

The situation in rural areas has in many aspects been more deploring. Rural areas offer few jobs outside agriculture. The mortality and suicide rate is higher there too.

Poverty has clearly regional features. The area of Latgale stands out as a special case. Problems tend to accumulate in Latgales rural districts, which are far away from large cities. There poverty has turned to chronic poverty, or poverty of long duration. This creates additional psychological obstacles for escaping the poverty and leads to marginalisation of a portion of the society, worsening of the crime levels. It would be unrealistic to expect that individuals who for many years had been used to a situation when jobs are looking for does, all of a sudden within couple or three years will become entrepreneurs or very mobile in looking for jobs. Especially taking into account that housing market is in its infant age. Besides not all the people have the ability to become entrepreneurs.

Those employed in eastern part of country have the net salaries which constituted only 3/4 from average net salary in state. The solution of this problem needs strategic approach. Authors of Annual Human Development Report gave such policy recommendations concerning Latgale: 1)Implement promises of tax relief to backward areas and determine why earlier programmes to promote development in Latgale have not yielded results. 2)Amend the state investment programme to include a special sub-programme “Investment in Latgale” focusing on infrastructure development in the region.

Ethnic affiliation and citizenship status are not very significant factors in explaining variation in socio-economic resources. Nevertheless the share of Russians among unemployed was 38.6 or 5.8 points more than their share in population (32.8 in 1995). The share of Latvians among unemployed in the same time was 47.3 or 7.8 point less than their share in population (55.1 in 1995). Those non-citizens who have large time period working in former Soviet Union outside Latvia until 1992 are becoming losers in accounting their pension sum.

Policy-makers have strong liberal approach, which has been already implemented in social policy reform since 1996. Very often such approach means the ignorance of the needs of ordinary people. The negligible size of the middle class makes such situation happen. This ignorance of person’s needs is partly inherited by political elite from totalitarian past. In Soviet time this ignorance of person had paternalistic pattern, meaning that those on top better knew what was necessary to those under their ruling.

People have an inherent distrust of official authorities.

Economic stratification and a sharp polarisation of income levels engendered political alienation of population. One of its form is elite-mass alienation: People’s belief in the efficacy of their participation is low.

Members of society, especially those hardest hit by the economic transition process, either lack the ability or do not understand how to utilise democratic channels of interest groups, to articulate their demands and social needs. The vast majority expresses disbelief in own abilities to influence political decisions, a factor which serves to widen the gap between the individual and political decision-makers.

Majority of the population takes no or little interest in politics and think that politics is “too complex”.

As positive trends in the development of Latvia we can mark following: the decline of GDP was stopped and in 1996 there was 2 percent increase. Budget for 1997 was accepted without deficit for the first time during last three years. The speed of privatisation and people’s involvement in privatisation process is increasing.

Hopeful sign is that in recent years the growth of NGOs has intensified in Latvia. The Ministry of Welfare and the UNDP have undertaken a comprehensive survey of the NGO sector in February 1996. Survey data suggest that most NGOs focus on issues related to children, poor families, pensioners and the disabled, and than their most significant functions are education, information, consultation and the distribution of humanitarian aid. Two main types of activity can be distinguished:

10. care and assistance and
11. defence of social interests and monitoring of government.

NORBALT survey data approved, that family is playing very important role as supporter for persons in critical situations. Those young people who cannot find a job usually live with their parents and are thus protected from poverty. Three generation family protects pensioners too. Many potential outsiders are protected by living in extended family households. The employment situation of the individual is much less relevant to people living with other providers. Aasland called it household’s “compensation” function.

Very hopeful sign is fact of increasing weight of social issue which are coming on public agenda. Latvia has local government election in March 1997. It will be easier to make some forecasts for future after this election. They can show if a trend of declining participation will be overcomed or not. What will be the balance of power among political parties. Because real way how to strengthen democracy is do it at the local government level (for instance, by reporting on expenditures, organising local referendum). The local government should play very important role in school and health reform.

Latvia does need administrative territorial reform and reform of social assistance system. Both are on government agenda. Reform of social assistance system now has been prepared together with World Bank and can start in the of 1997. One of its goal is to improve the coverage of those in the largest need and to increase capacity of self-help.

Authors of Human Development Report 1996 proposed to develop a national poverty reduction strategy. But there is not enough political resources to put this issue on political agenda.

Much time and effort must be invested in an effective, all-encompassing civic education programme, which could be carried out by the National Human Rights office in co-operation with the Ministry of Education and Science, NGOs, the adult education system and the media. The ideas to continue and expand the programme “Link With the Citizen”, to expand co-operation between the National Human Rights Office and NGOs in convening fora on human rights and human rights education look more realistic. Opinion Poll in January 1997 shows the growing understanding the role of human rights about population.

APPENDIX 1 

Commentary on data sources, accuracy and reliability.

Table 1.1 Distribution of the Population of Latvia by Ethnicity, March 1995

Ethnicity	Total in thsds	% of population
Latvians	1.421.987	56.51
Russians	765.896	30.43
Belarussians	109.122	4.34
Ukrainians	69.334	2.76
Polish	64.987	2.58
Lithanians	35.707	1.42
Jewish	15.284	0.61
Roma (Gypsy)	7.616	0.30
German	3.844	0.15
Tatar	3.553	0.14
Estonian	3.017	0.12
Armenian	2.539	0.10
Moldovan	1.947	0.08
Azeri	1.630	0.06
Chuvash	1.085	0.04
Georgian	1.002	0.04
Liv	207	0.01
Other	7.760	0.31
Total	2.516.517	100.00

Source: Latvia Human Development Report 1995, p.22

Table 1.2. Latvia: Dynamics of GDP by Branch of Production(at constant 1993 prices, in per cent, 1990 = 100)

Branch of production	1991	1992	1993	1994	1995
Gross domestic product	89.6	58.4	49.7	50.0	49.2
Gross value added at basic prises	88.9	57.5	49.3	49.7	48.9
Agriculture, hunting and forestry	98.0	69.5	56.0	47.3	46.3
Fishing	96.9	46.9	37.5	35.5	39.9
Mining and quarrying	88.0	48.0	32.2	45.4	39.6
Manufacturing	100.4	51.5	34.8	31.1	28.8
Electricity, gas and water supply	97.2	68.4	54.9	53.8	53.7
Construction	59.4	24.4	12.3	13.7	16.0
Services	88.2	74.9	79.9	86.8	86.1

Source: Economic Development of Latvia. Report. Ministry of Economy Republic of Latvia. Riga, June 1996, p.21

Table 1.3. Latvia: Basic Indicators of Economic Development.

	1994	1995	1996
Inflation	36.6	26.0	13.5
(in percent of GDP, unless indicated otherwise)
Deficit of state budget	-1.9	-3.8	-1.6
External debt	9.2	9.2	11.0
Foreign trade balance	-6.9	-11.5	-13.0
Unemployment (end of year)	6.5	6.6	7.2
Exchange rate, lat per SDR	0.8	0.8	0.8

Source: Economic Development of Latvia. Report. Ministry of Economy Republic of Latvia. Riga, June 1996, p.8

Table 1.4. Real Wages and Salaries of Employed Persons in the Economy and Average Consumer Price Indexes

	1990	1991	1992	1993	1994	1995
Monthly average gross wages and salaries, Ls	1.61	3.00	21.50	47.23	71.87	89.50
As percent of 1990
Consumer price index	100	272	2861	5986	8135	10169
Average monthly wage and salary	100	186	1335	2934	4464	5559
Employed purchasing power index	100	68	47	49	55	55
As percent of previous year
Consumer price index	100	272	1051	209	136	125
Average monthly wage and salary	100	186	717	220	152	125
Employed purchasing power index	100	68	68	105	112	99.6

Source: 1996. Statistical Yearbook of Latvia, p. 88

Table 1.5. Average Monthly Pension and Dynamic of Pensioners Purchasing Power

	1990	1991	1992	1993	1994	1995
Sum of pension in the end of year, Ls	0.50	2.16	13.40	20.22	28.37	33.76
As percent to the employed monthly average wages and salaries	37.0	72.0	60.6	42.8	39.5	37.7
Pensioners’ purchasing power indices
As percent to 1990	100	119	70	78	87	84
As percent to previous year	100	119	59	112	111	97

Source: Latvijas iedzivotaju paaudzu nomaina (1996), 20.p.

Table 1.6. Average Income in Lats Per Family Member and the Consumer Price Index, 1991-1995

	1991	1992	1993	1994	1995
Average cash income per family member	2.07	13.88	27.41	40.29	49.34
Subsistence budget per capita (goods and services): State Statistical Committee estimate	1.74	18.57	37.59	51.50	67.32
Crises subsistence budget per capita (goods and services): Welfare Ministry estimate	-	-	30.54	38.42	47.22
Income per family member as % of
Subsistence budget	-	-	73.0	78.0	73.3
Crisis subsistence budget	118.9	74.7	90.3	104.9	104.5
Minimum wages, annual average	1.05	5.89	12.50	22.00	28.00
Minimum wages as % of crisis subsistence budget	-	-	40.9	57.3	59.3

Source: Latvia. Human Development Report. 1995, p.54; Labour in Latvia. 1995, p.13, 104. 1996. Latvia. Statistical Yearbook

Table 1.7. Official Crisis Subsistence Minimum as Compared to Social Benefits, 1 January 1995 (Lats)

	Jan, 1 1995	Jan, 1 1996	Number of recipients (Jan 1996) x 1,000
Crisis subsistence minimum	38.23	38.23
Average pension	28.63	33.77
Old-age pension		33.76	666.0
Disability pensions	31.65	37.21	103.4
Survivor’s pensions	27.29	31.79	38.4
Social pension	18.85	21.96	19.6
Social pensions for handicapped since childhood	21.08	21.22
Minimum wage	28.00	28.00

Source: Latvia. Human Development Report 1995. p.29 1996 Statistical Yearbook of Latvia 1996

Table 1.8. Distribution of Households According to Income and Calorie Consumption,1993

Monthly income per family member (lats)	Distribution (%)	Average income per family member (lats)	Daily calorie consumption (kcal) per family member		Including of animal origin
			1992	1993	1992	1993
All families	100.0	27.41	2312	2372	922	867
Including with incomes:
up to 15.00	11.9	12.82	1920	1889	745	679
15.01-25.00	35.0	20.30	2088	2130	822	743
25.01-35.00	25.3	28.92	2390	2513	962	922
35.01-45.00	13.5	39.70	2521	2741	1025	1050
45.01-55.00	7.4	49.22	2766	3049	1153	1165
55.01 +	6.9	71.16	2883	3235	1241	1273

* Full subsistence minimum 35.57 lats; Crises subsistence minimum 30.00 lats (50.4 USD) with energy value of 2533 kcal.
Source: Latvia. Human Development Report 1995, p.43.

Table 1.9. Incomes of Studied Households in the 4th Quarter of 1995 (Ls per one member of a household)

	All households	Including:
		In cities	In rural areas
Income at a disposal	49.34	52.42	43.62
Including:
Money income	40.80	46.20	30.72
Income in kind	8.54	6.22	12.90

Source: Economic Development of Latvia, p.49

Table 1.10. Content of Household Expenditure in the 4th Quarter of 1995 (monthly per one member of a household)

	All households	Including:
		In cities	In rural areas
Total consumption expenditure, Ls	46.52	49.08	41.75
Including:
Food	50.9	47.9	57.4
Clothes, footwear	6.8	7.2	5.7
Housing, flat, maintenance costs	13.3	15.6	8.4
Internal equipment of the house, its maintenance	3.1	3.4	2.4
Health care	3.9	4.2	3.4
Transport	5.7	5.0	7.3
Recreation	4.9	5.3	3.9
Education	2.0	2.2	1.6
Hotels, public catering, travels	1.5	1.8	0.7
Others	5.3	4.8	6.5

Source: Economic Development of Latvia, p.50

Table 3.1 Basic Indicators of Health Care Service in Latvia

	Per 10,000 population
Year	Physicians of all special.	Paramedical Staff	Hospital beds
1990	47	106	140
1991	46	103	136
1992	41	91	130
1993	36	86	122
1994	34	77	120
1995	34	73	111

Explanation: In Soviet time Latvia had a big recreation zone for whole USSR with sanatoriums.

Table 3.2. Births, deaths and natural increase rates per 1.000 inhabitants in Latvia

Year	Births	Deaths	Natural increase	Infant Mortality	Suicides per 100,000	Life expect.
						Male	Fem.
1990	14.2	13.0	1.2	13.7	26.0	64.2	74.6
1991	13.0	13.1	-0.1	15.6	28.5	63.8	74.8
1992	12.0	13.5	-1.5	17.4	34.9	63.3	74.8
1993	10.3	15.2	-4.9	15.9	42.5	61.6	73.8
1994	9.5	16.4	-6.9	15.5	40.5	60.7	72.9
1995	8.6	15.5	-6.9	18.2	40.7	60.8	73.0

Source: Demographic Statistics in the Baltic countries. 1996. Tallinn, Riga, Vilnius., p.9; Statistical yearbook of Latvia, 1996, p.61

Table 3.1 The structure of the housing stock according to the type of tenure

	1980	1990	1996
Share of private sector	29.7	26.1	44.4
In urban area	10.7	9.1	17.5
In rural area	19.0	16.0	26.9
Share of public sector	67.0	69.2	48.3
In urban area	49.1	49.5	41.4
In rural area	17.9	19.7	6.9
Share of non-profit housing for rent	no	no	no
Share of private rental dwellings	no data	no data	no data

Source: Statistical Yearbook of Latvia, 1992. Riga, 1993, p.290; Monthly bulletin of Latvian Statistics, 5/1996, Pielikums, p.1.

Table 3.2. The number of denationalised residential buildings and dwellings

	1992	1993	1994	1995	1996 (Jan-March)	Total
Denational. Residential building	1857	3497	1270	1082	139	7845
Total floor space of denational. Dwelling, thsd.sq.m.	554.5	1339.2	566.2	346.0	115.1	2921
Denational. Dwellings number, thsd.	11.4	24.8	11.9	8.9	3.0	60.0

Source: Statistical Yearbook, 1993, Riga, 1994,p. 111; Monthly Bulletin of Latvian Statistics, Nr.4/1996, pielikums, Nr.5/1996, Pielikums; Latvijas Dzivojamais fonds. Statistikas bietens. Riga, 1996,p.12

Table 3.3. Capital Investment in Dwelling Construction (at constant prices of 1995; mln lats)

	1990	1991	1992	1993	1994	1995
Total	297.1	177.1	85.6	56.0	38.5	33.2
Of which:
State and local government enterprises and organisations	200.9	116.5	47.3	11.9	2.7	0.4
Statutory companies and public organisations	72.4	44.1	16.0	11.2	7.5	4.4
Private persons	23.8	17.1	22.3	32.9	28.3	28.4

Source: 1996 Statistical Yearbook of Latvia, p.112

Table 3.4 New Residential Buildings Completed (total floor space: thsd. m²)

Year		Investors, of which
	Buildings completed, total	State and local government enterprises and organisations	Statutory companies and public organisations	Private persons
1985	1146	701	308	137
1990	808	465	219	124
1991	459	281	79	99
1992	354	176	67	111
1993	287	89	71	127
1994	269	61	86	122
1995	219	9	38	172

Source: 1996 Statistical Yearbook of Latvia, p.109

Table 3.5 Dwellings Completed (thsds)

Year		Investors, of which
	Buildings completed, total	State and local government enterprises and organisations	Statutory companies and public organisations	Private persons
1985	19.5	12.8	5.4	1.3
1990	13.3	9.1	3.0	1.2
1991	7.2	5.1	1.2	0.9
1992	4.9	3.0	1.0	0.9
1993	3.7	1.6	1.2	0.9
1994	3.4	1.1	1.5	0.8
1995	1.8	0.1	0.6	1.1

In 1995 the average floor space of dwellings completed on account of state and local government investments was 65.9 m2, while that of private houses stood at 161.2 .m2
Source: 1996 Statistical Yearbook, p.112

Table 3.6 Actual retail price indices of selected goods and paid services (as percent of previous years)

	1991	1992	1993	1994	1995
Food	276	861	190	132	118
Rent	135	1663	859	181	130
Communal services	171	10637	307	100	136
Health care services	156	1508	367	188	140
Consumer price indices	272	1051	209	136	125

Source: Statistical yearbook of Latvia. 1993, p.29, 102, 104, Statistical yearbook of Latvia. 1994, p.113, 115, 119.

Table 3.7. Part of rent and communal payments in expenditure of households

1985	1990	1991	1992	1993	1994	1995
2.6	2.6	1.7	6.1	12.5	11.9	11.6

Table 4.1 Female-Male Gaps. Females as Percentage of Males

Year	Life expec-tancy at birth	Popu-lation	Secon-dary enroll-ment	Upper second gra-duates	University full time equivalent enrolment	Labour force	Unemployment	Wages
1989	115.2	115.3	96.9	97.0	124.8	-	-	-
1993	119.8	115.2	100.2	110.4	106.7	96.3	113.5	77.0
1994	120.1	115.5	107.2	118.9	133.0	94.2	107.9	77.0
1995	121.7	115.8	108.0	120.1	140.0	94.2	109.7	78.3

Source: Latvia Human Development Report, 1996, p.105

Table 4.2. Number of Unemployed Persons Referred to Vocational Training and Retraining by the Employment Service

	1992	1993	1994	1995	1996 Jan-Jun
Referred to vocational training or retraining	596	2816	5251	6316	4540
Completed training or received higher qualification	238	1744	4702	5052	4350
Provided with a job after the completion of training or retraining courses	-	226	1057	no data	no data

Source: Labour in Latvia. Riga, 1995, p.57; Monthly bulletin of Latvian Statistics, 1995, Nr.12 p.46 and 1996 Nr.6 p.7

Table 4.3. The number of Trade Unions Members in Latvia

	1993	1994	1995
Employed persons	1.308.000	1.240.000	1.199.000
Trade Unions members	624.707	465.212	321.572
Share of Trade Unions members among all employed (%)	47.8	37.5	33.8
Employers and self-employed (expert’s estimation)			250.000

Source: The Report of Trade Unions Activity between 2nd and 3rd Congress, 28-29 November, 1992 -15 September, 1995, Riga, November 25, 1995

Table 4.4. Number of registered nonworking and unemployed persons (thsd.)

	1992 1 July	1993 1 July	1994 1 July	1995 1 July	1996 1 July
Registered nonworking persons	19.9	80.9	98.5	83.5	95.1
Registered unemployed persons	8.6	64.6	85.1	77.9	88.5
Ratio of registered unemployed persons to the total number of nonworking	43	80	86	93	93
Recipients of unemployment beneficiaries as a percent of total unemployed persons	82	75	40	41	30

Source: Labour in Latvia. Riga, 1995, p.62-65; Monthly Bulletin of Latvian Statistics, 5/1996, p,46-47; Nr.6. Pielikums, p.1-2.

Table 5.1. Enrolment by type of school (at beginning of school year; thsd population

	1990/1991	1995/1996
Enrolment - total	467	434
Of which: Comprehensive schools	352	348
Including: Full-time	340	338
Part-time, including: Correspondence students	12	10
Vocational schools	33	25
Institutions of secondary special education	36	17
Institutions of higher education	46	44

Source: 1996 Statistical Yearbook of Latvia, p.120

Table 5.2. Enrolment in the Education System, October 1995

	Number of students	% of relevant age group	Repeat students	% of all students repeating
Pre-school education	72.847	54.0	-	-
Basic education	299.762	90.2	7.593	2.5
Grades 1-4	139.925	91.6	3.733	2.7
Grades 5-9	159.837	88.9	3.860	2.4
General upper secondary education	37.898	38.4	32	0.09
Vocational education	25.203	19.0
Upper secondary professional education	17.174	12.9
Special education	7.820
Higher education	45.828
Master’s students	3.818
Doctoral students	229

Source: Latvia Human Development Report, 1996, p.72

Table 7.1. Public Agenda (The most important problems which government should solve as first) according to Public Opinion Poll data in November and December 1996. As percent of whole respondents number

Problems	November	December
The creation of new job place, the solution of unemployment problems	28	32.8
The solution of education problems	21.3	25.8
Social protection, social policy	20.4	22.9
Health care	20.2	17.4
The necessity to increase wages and salaries	10.8	15.6
Economic development and stability	17.5	15.5
The increase of pensions	15.6	15.4
The work of police and struggle against criminality	18.5	14.8
The help to agriculture	8.2	10.2
The custom’s work and order on boarders	12.4	10.2
The renewal of industry and production	8.0	10.0
The order in tax system	8.9	8.9
The increase of wealth and living standard	7.2	6.1
The review of citizenship law	6.6	5.9
The decrease of communal payments	4.0	5.8

Source: Sabiedriskas domas izpetes centra Sociali korelativo datu sistemas sagatavots materials. Diena, 1997, January 27.

APPENDIX 2.  

List of projects associates, contributors, useful contacts with expertise in the field of social exclusion.

Large-scale survey conducted at the end of 1994 by the Central Statistical Bureau of Latvia and the Norwegian Institute of Applied Social Research (Fafo) was published in 1996 under tittle “Latvia: The Impact of the Transformation”, The NORBALT Living Conditions Project.

UNDP has published two annual Human Development Reports for Latvia. Latvia Human Development Report, 1995 and Latvia Human Development Report, 1996, which were broadly distributed in society.

Latvia’s first Report provided a broad overview of the dilemmas of furthering social integration and alleviating social stress since independence. The goals of Reports are: to analyse the human dimension of the transition, to promote public awareness and debate about human development and to propose ways to put and keep people at the centre of the development process. Under the rubric of social stress the Report 1995 had chapters on the human cost of rising poverty, growing unemployment, deteriorating public health, and burgeoning crime. The 1995 Report outlined the particular needs of marginal social groups - orphans and children without parental supervision and support, people with disabilities, the elderly and former prisoners. The 1995 Report outlined the particular needs of these groups and suggested that broader public involvement and awareness of their problems was necessary. The Latvia Human Development Report 1995 generated lively discussion and debate in the mass media. Representatives from several government ministries and a host of NGOs have submitted detailed comments and criticism to UNDP. While some readers found the Report overly critical, others have distributed the document as an accurate portrait of circumstances in Latvia. Several institutions of higher education have used the Report as a text on social policy and Latvia’s development challenges.

Second Report investigates how the concept of human development can be operationalized in the Latvian context and proposes recommendations for improving economic policy, promoting education reform and enhancing popular participation in social, economic and political life. Both Reports highlight the human costs of the transition, progress made still independence and challenges still ahead.

In contemporary Latvia, household budget surveys are virtually the only source of statistical information on the differentiation of households according to income and expenditures. The first reoriented such survey was only in 1996 being completed. Therefore the full data about results of this survey are not available yet.

LITERATURE 

Aadne Aasland(ed.) Latvia: The Impact of the Transformation. The NORBALT Living Conditions Project. Fafo report 188, 1996.

Demographic Statistics in the Baltic Countries. 1996. Tallinn, Riga, Vilnius.

S.Dobelniece. The poverty line and subsistence minimum in Latvia. // Scandinavian Journal Social Welfare, 1994: 3; 193-202

S.Dobelniece. Nabadziba Latvija Parejas Perioda. //Sociologijas Gadagramata, 1997 (prepared for publishing)

Health in Riga, 1996, p.25)

Household budget survey data, 1996, January -June. (in Latvian). Riga, 1996

Juris Krumish. Suicide Mortality in Latvia: Current Trends and Differentiation.//Population: Reproduction, Composition, and Quality. - Proceedings of the Latvian Academy of Sciences. A.-1993.-N 1 (546).- P.9-12

Juris Kruminsh. Life Expectancy and Mortality by Causes of Death in Estonia, Latvia and Lithuania: Socio-economic and Environmental Factors and Health Policy Issues.// Europe Without Frontiers: the Implications for Health. London School of Hygiene and Tropical Medicine. Second Annual Public Health Forum: ed. by Charles E.M.Norman and Patrick Vaughan. John Wiley $ Sons Ltd, 1993, p.234-239.

Juris Kruminsh and Peteris Zvidrinsh. Recent Mortality Trends in the Three Baltic Republics// Population Studies, 46 (1992), 259-273.

Juris Kruminsh(1993). Iedzivotaju muza ilgums - tendences un palielinasanas problemas.168 p.

Labour in Latvia. Collection of Statistical Data. Riga, 1995.

Labour in Latvia. Collection of Statistical Data. Riga, 1996.

Latvia. Human Development Report, 1995.

Latvia. Human Development Report, 1996.

Latvijas iedzivotaju paaudzu nomaina.(1996) Redaktors P.Zvidrins

Latvia in figures, 1992. Collection of Statistical Data.

Latvia in figures, 1996. Collection of Statistical Data.

Latvijas drosiba: iekspolitiskie aspekti. Ministru prezidenta V.Birkava referats.- Latvijas Vestnesis, 1994, May 17.

Monthly Bulletins of Latvian Statistics, Nr.12-1995,

Monthly Bulletins of Latvian Statistics, Nr.1-9, 1996.

Namipasumu denacionalizacijas gaita Latvija. Riga, 1996.

Newspaper "Diena", 1994 May, 10. The review about differences in human right between citizens and non-citizens, which was compiled by Boris Tsilevich and Alexander Ruchkovsky (INSIGHT Ltd.).

Newspaper "Neatkariga", 1995. September 23; 1995. November 18; 1995, December 4.

Newspaper "Rigas Balss", 24 July, 1996. Vislielakas briesmas - uzticibas zaudesana.- Karlis Lapins

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1993. Statistical Yearbook of Latvia. Riga, 1994;

1994. Statistical Yearbook of Latvia. Riga, 1995;

1995. Statistical Yearbook of Latvia. Riga, 1996

The Report of Trade Unions Activity between 2nd and 3rd Congress, 28-29 November, 1992 -15 September, 1995, Riga, November 25, 1995

Valdibas darba gada parskats. No 1994.gada augusta lidz 1995.gada augustam.