In Latvia, Riga has become a ghost town

The third-poorest country in the EU, Latvia punitive welfare conditions and the exclusion of Russian-speakers from surrounding nations has lead to a depopulation of 30,000 a year.

Early this year, Latvia’s parliament voted to join the eurozone. The country has endured two economic shocks in recent decades – in the early 1990s and in 2008, when it had the deepest recession in the world. Growth and eurozone membership in January 2014 are supposedly the reward.
 
Some measure of Latvians’ real feelings can be taken in the results of the local elections in June, won decisively by the social-democratic Harmony Centre, which ran on an antiausterity platform. Yet Latvian national politics is marked by a division between ethnic Latvians and the Russian speakers – people of Russian, Belarusian and Ukrainian descent –who make up a third of the population. Thousands of these are denied citizenship and do not have the right to vote.
 
Harmony Centre is dismissed as a Russian party by the ruling coalition of neoliberals and the far-right National Alliance and remains in opposition, despite winning more seats than any other single party in the 2011 parliamentary election.
 
Latvia is the third-poorest country in the EU; 12.8 per cent of the adult population is unemployed. The dole lasts only nine months. Youth unemployment has almost halved from a peak of 42 per cent in 2010 – but soon the government, apparently following the UK’s lead, plans to turn welfare into workfare, with forced jobs such as road sweeping. The result has been depopulation. Approximately 30,000 people a year are leaving Latvia. Those who migrate are young and often well educated.
 
The effects are visible in the capital, Riga. A few minutes by tram outside the old town, which is showered with public money, a different reality emerges. Areas such as the Moscow District are crammed with crumbling tenements and emptywooden houses; it could be the set for a ghost town in a low-budget western. The dereliction is leavened only by alcohol and second-hand clothes shops. Among this are budget hotels to cater for the stag-party trade, which completely ignores the deprivation all around.
 
Official history is sliding backwards, too, with rising ethnic nationalism leading to events such as the absurd annual commemoration of Latvian Waffen SS divisions as a necessary evil, undertaken to fight the Soviets.
 
The anti-Russian politics is only a veil. Behind it is an attempt to justify privatisation and austerity. Despite its crisis, the eurozone has a special attraction for the former communist countries that have found themselves among the happy few in the EU since 2004. Estonia, Slovakia and Slovenia all joined the euro – this was proof to some that they had finally vanquished the “ghosts of communism” and were showing their true worth.
 
Latvians are often compared favourably with the Greeks as thosewho meekly accepted austerity and are now reaping the rewards. Yet that lack of resistance stemmed from the cynical manipulation of ethnic differences – which is now dividing Latvian society. 
A man walks by a currency exchange in Riga. Photograph: Getty Images.

Agata Pyzik is a Polish writer publishing in Polish and English in many publications in the UK and in Poland, including the Guardian, Frieze and The Wire. Her main interest is (post) communist Eastern Europe, its history, society, art. She's finishing a book on postcommunism called Poor But Sexy for Zero Books. She lives in London and has a blog.

This article first appeared in the 19 August 2013 issue of the New Statesman, Why aren’t young people working

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A global marketplace: the internet represents exporting’s biggest opportunity

The advent of the internet age has made the whole world a single marketplace. Selling goods online through digital means offers British businesses huge opportunities for international growth. The UK was one of the earliest adopters of online retail platforms, and UK online sales revenues are growing at around 20 per cent each year, not just driving wider economic growth, but promoting the British brand to an enthusiastic audience.

Global e-commerce turnover grew at a similar rate in 2014-15 to over $2.2trln. The Asia-Pacific region, for example, is embracing e-marketplaces with 28 per cent growth in 2015 to over $1trln of sales. This demonstrates the massive opportunities for UK exporters to sell their goods more easily to the world’s largest consumer markets. My department, the Department for International Trade, is committed to being a leader in promoting these opportunities. We are supporting UK businesses in identifying these markets, and are providing access to services and support to exploit this dramatic growth in digital commerce.

With the UK leading innovation, it is one of the responsibilities of government to demonstrate just what can be done. My department is investing more in digital services to reach and support many more businesses, and last November we launched our new digital trade hub: www.great.gov.uk. Working with partners such as Lloyds Banking Group, the new site will make it easier for UK businesses to access overseas business opportunities and to take those first steps to exporting.

The ‘Selling Online Overseas Tool’ within the hub was launched in collaboration with 37 e-marketplaces including Amazon and Rakuten, who collectively represent over 2bn online consumers across the globe. The first government service of its kind, the tool allows UK exporters to apply to some of the world’s leading overseas e-marketplaces in order to sell their products to customers they otherwise would not have reached. Companies can also access thousands of pounds’ worth of discounts, including waived commission and special marketing packages, created exclusively for Department for International Trade clients and the e-exporting programme team plans to deliver additional online promotions with some of the world’s leading e-marketplaces across priority markets.

We are also working with over 50 private sector partners to promote our Exporting is GREAT campaign, and to support the development and launch of our digital trade platform. The government’s Exporting is GREAT campaign is targeting potential partners across the world as our export trade hub launches in key international markets to open direct export opportunities for UK businesses. Overseas buyers will now be able to access our new ‘Find a Supplier’ service on the website which will match them with exporters across the UK who have created profiles and will be able to meet their needs.

With Lloyds in particular we are pleased that our partnership last year helped over 6,000 UK businesses to start trading overseas, and are proud of our association with the International Trade Portal. Digital marketplaces have revolutionised retail in the UK, and are now connecting consumers across the world. UK businesses need to seize this opportunity to offer their products to potentially billions of buyers and we, along with partners like Lloyds, will do all we can to help them do just that.

Taken from the New Statesman roundtable supplement Going Digital, Going Global: How digital skills can help any business trade internationally

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