Country Overview
Country Facts
Overview of U.S. Government Assistance
In FY 2005, the USG allocated an estimated $13.28 million in assistance to Latvia, including:
In FY 2005, a total of 124 Latvians traveled to the United States on USG-funded exchange programs.
The last year for new SEED bilateral funding to Latvia was FY 1999, although some additional SEED funds for public diplomacy and Democracy Commission grants were provided through FY 2003. Other forms of U.S. Government (USG) assistance to Latvia continued through FY 2005. In addition, some activities funded through SEED funding from prior fiscal years continued in FY 2005.
FY 2005 Assistance Overview
U.S. STRATEGIC INTERESTS
In 2005 Latvia consolidated its newly acquired membership in North Atlantic Treaty Organization (NATO) and the European Union (EU), and emerged as a player whose significance in both organizations exceeds the country's modest population and resource base. Latvia continued one of the most successful transition processes of any country of the former Soviet Union. More important still, it began to reach out more actively to other countries still struggling to move away from authoritarian politics and state-dominated economies. For the second year in a row Latvia was the fastest growing economy in the European Union. Combined, these political and economic trends strengthened the potential impact of the U.S.-Latvian partnership in promoting freedom, democracy, and market-based prosperity worldwide. Latvia's ability to export freedom and prosperity to its neighbors rests on a strong democracy and civil society at home, and the ability to effectively confront those who would attempt to undermine Latvia's progress through crime or corruption.
KEY ISSUES
Latvia on the whole is successfully transitioning from assistance recipient to modest assistance provider in targeted areas. Latvia is increasingly active in working with neighbors in Central and Eastern Europe and beyond to promote democratic reform. Latvia's solid economic growth has given it the resource base to pursue these regional initiatives, even as it seeks to address lingering and serious social and infrastructure gaps at home. Latvia's ability to promote democracy beyond its borders is dependent upon strong democratic and law enforcement institutions at home, and here, too, the United States and Latvia are working as partners to ensure that Latvia has the tools it needs to resist those who would attempt to subvert its laws or corrupt its public institutions.
Latvia received its final USG SEED funding in FY 2003, though some activities from this assistance continued through FY 2005. SEED-funded activities included assisting Latvian law enforcement authorities in taking more aggressive action against financial crime. SEED assistance also helped Latvia's Anti-Corruption Bureau in exercising increased independence and aggressiveness. The USG completed a predominantly SEED-funded holocaust education curriculum project, and continued several other SEED-funded democratic reform and social sector reform programs.
FY 2005 Country Program Performance
Democratic Reform
Latvia is now a full and contributing member of key western democratic institutions, including NATO, EU, Council of Europe (CoE), Organization for Security and Cooperation in Europe (OSCE) and others. Thus, U.S. policy toward Latvia has moved beyond helping Latvia complete its democratic transition and is now focused on working with Latvia as a partner in spreading the reach of democracy and freedom in Central and Eastern Europe and beyond. Latvia's ability to spread democracy abroad is based on a strong democracy at home, and Latvia continues to make progress in integrating its ethnic Russian minority and has engaged constructively on different historical issues like the Soviet occupation of Latvia and Latvia's role in World War II.
U.S. ASSISTANCE PRIORITIES
In FY 2005, the United States spent $130,000 in previously-obligated SEED assistance from prior fiscal years to the Ministry of Education to finalize a formal Holocaust curriculum. Also in FY 2005, approximately $150,000 in prior year SEED-funded Democracy Commission Small Grants projects awarded to non-governmental organizations (NGO) supported an array of USG policy goals, including: support for Government of Latvia (GOL) programs aimed at integrating the large Russian-speaking non-citizen population; funding a travel grant program designed to familiarize current and future Latvian leaders with U.S. policies and institutions; and promoting mutual understanding among Baltic and Russian officials by facilitating travel for Latvian participants to attend regional seminars and conferences.
PROGRAM PERFORMANCE
Latvia is no longer receiving assistance in this sector, though spending assistance from previous fiscal years continues.
The USG has helped Latvia bolster democratic reforms through a variety of SEED-funded programs, the two most prominent of which have been the Democracy Commission and support for Latvian efforts to integrate its large Russian-speaking, non-citizen populace. USG assistance continued to use SEED funds to help Latvians study and teach their World War II history, including the Holocaust.
Programming under previous years' Democracy Commission small grants still continues, and enables NGOs and academic institutions to further the development of civil society, as Latvia continues to build and consolidate its democracy. In particular, USG assistance has funded projects: promoting integration of the non-citizen, mainly Russian-speaking minority; supporting the research and discussion of historical issues, including World War II and the Holocaust; promoting rule of law and transparency in business and government; and supporting public health and environmental protection. Examples of specific ongoing projects include a grant to the NGO Delna, the local chapter of Transparency International, to create and sustain an online journal that will offer independent information and provide professional and critical analysis of the courts' activities in Latvia, in conjunction with the University of Latvia (LU) School of Law. They also include: a grant for a project focused on preventing child abuse and juvenile sexual exploitation; a grant to the NGO "Children of Siberia" to support the production of the film "Children of Siberia" documenting experiences during the Soviet occupation; and the completion in FY 2005 of a curriculum development program on the Holocaust.
In addition to sponsoring travel for 21 Latvians to the United States in FY 2005 through International Visitor programs, USG assistance also funded travel grants designed to help an additional five Latvians attend regional conferences and meetings where they could interact with Baltic and Russian counterparts.
Economic Reform
Latvia is one of Europe's economic success stories and has now for several years running had one of the region's fastest-growing economies. This growth is largely due to a successful legacy of economic reform, undertaken in the early days of Latvia's democratic transition and later in the lead-up to European Union membership. Latvia's small but open and agile economy is increasingly important in providing the resources that Latvia's needs to engage on other important regional issues that intersect with regional stability and the promotion of democratic values. Government policy is now largely directed at maximizing use of EU structural funds to build additional infrastructure important for further economic growth, and at funding new initiatives like the introduction of investment funds that can produce stronger capital market growth. Latvia is now making the transition from aid recipient to donor.
U.S. ASSISTANCE PRIORITIES
Latvia's strong economic performance has allowed the USG to focus its efforts in this area predominantly on social-sector spending. In FY 2005, SEED funds from prior fiscal years supported regional participation in the December 2004 Washington D.C. component of the Riga Women Business Leaders' Summit (RWBLS), the follow-on to the successful 2002 Helsinki Women Business Leaders Summit. RWBLS' primary mission was promoting mentoring and experience sharing between U.S. and local women business leaders.
PROGRAM PERFORMANCE
Latvia is no longer receiving assistance in this sector, though spending of assistance from previous fiscal year continues.
Latvia's strong economic growth has provided ample resources for its sustained macroeconomic development. Latvia's EU accession took place on May 1, 2004, and has accelerated this trend. Latvia has low taxes, low wages, and an underdeveloped capital market. Over the last five years, Latvia's small, open and agile economy has largely reoriented its trade away from Russia and the other Eurasian states and toward the EU. The USG used SEED funds from prior fiscal years to support entrepreneurial and business projects in FY 2005, specifically travel to the U.S. component of the two-phased Riga Women Business Leaders Summit (RWBLS). RWBLS brought together American, Baltic, Finnish, Russian, Ukrainian and Belarusian women CEOs and business owners to exchange experiences as entrepreneurs and encourage the transfer of that knowledge to other women business owners and managers in local markets.
Social Reform and Humanitarian Assistance
Latvia, while benefiting from tremendous economic growth, still constitutes one of the European Union's poorest regions. Fortunately, continued economic growth does provide additional resources for critical social services like health care and education, and EU funds are increasingly available to help renew or rebuild critical infrastructure. Still, Latvia continues to face difficult tradeoffs in years ahead as it seeks to balance what are still serious social welfare needs with Latvia's ambitions to play a more aggressive policy role in the region.
U.S. ASSISTANCE PRIORITIES
Latvia has graduated from bilateral SEED assistance. The United States no longer provides new funding to support social reform or to fund humanitarian projects in Latvia, and programs funded in prior fiscal years have ended.
Security, Regional Stability and Law Enforcement
Latvia is a reliable NATO ally and contributor to regional security. Latvia has troops deployed in Iraq, Afghanistan, and the Balkans, and has sought to use assistance funds in ways that strengthen its ability to carry out key niche capabilities in Alliance activities. Latvia is now also part of NATO and the EU's eastern border and has worked closely and cooperative with the United States and other regional partners to enhance border stability and security. Latvia has also worked actively with the U.S. government on key regional law enforcement priorities, including cyber-crime, the fight against money laundering, and trafficking in persons. In these key areas, however, Latvia's political commitment to progress was not always matched by results measured in arrests, prosecutions and convictions. U.S. assistance is directed at trying to work with Latvia as a partner to improve this performance.
U.S. ASSISTANCE PRIORITIES
Strengthening the rule of law in Latvia remained a top USG priority for spending SEED funds from prior fiscal years in FY 2005. Rule of law priorities included training on combating money laundering for law enforcement officers, prosecutors, and judges, and technical assistance to Latvia's Anti-Corruption Bureau (ACB), which accounted for approximately $20,000. U.S. security-related assistance continued to promote regional stability by helping Latvia to enhance its interoperability with NATO forces through Foreign Military Financing (FMF), International Military Education and Training (IMET), and Enhanced International Peacekeeping Capabilities programs, and amounted to $10,856,000. In addition, the United States continued to provide training and equipment through the Export Control and Related Border Security (EXBS) Assistance Program, aimed at helping Latvian border guards and customs officials bolster export controls. The EXBS program in Latvia ends in 2006. The USG disbursed approximately $150,000 of previously obligated funds in FY 2005 for anti-trafficking in persons programs.
PROGRAM PERFORMANCE
In past years the USG has provided significant assistance resources for building Latvian capacity in the law enforcement and judicial sphere. These program resources are now at an end, and the key Latvian institutions necessary to secure a transparent economy, combat corruption and ensure rule of law are in place. In addition, a recently signed Extradition Treaty and associated Mutual Legal Assistance Memorandum provide new tools to achieve progress in this sector. While continuing to provide access to training opportunities, the USG approach has shifted from assistance toward pressing for improved performance from Latvia judicial and law enforcement institutions.
Strengthening the rule of law has historically been a high priority for SEED assistance in Latvia. This is done predominantly through regional anti-corruption and rule of law programs, which, in Latvia's case, have focused on training for law enforcement officials, prosecutors and judges provided by the U.S. Department of Justice Office of Overseas Prosecutorial Development, Assistance, and Training (OPDAT). In early 2003, Latvia formally launched its Anti-Corruption Bureau (ACB), tasked with combating corruption, and subsequent governments have made slow but steady headway in efforts to dismiss officials tied to previous conflict of interest and corruption scandals.
SEED funds from prior fiscal years have also supported regional initiatives designed to combat trafficking in persons (TIP). Latvia is considered a "Tier II" country and primarily a TIP source country. In its "Strengthening Social Service Provision to Victims of Human Trafficking in Latvia: Mucenieki Center Pilot Project," the International Organization for Adolescents (IOFA) together with the Council of Latvian Youth Centers (CLYC) conducted an assessment to determine the current availability of comprehensive social services to victims of TIP in Latvia. Training was also provided to professionals from NGOs, governmental organizations, and the Mucenieki Center for Asylum Seekers, which is frequently used as a shelter for victims of human trafficking. A total of 30 professionals were trained to identify victims of human trafficking and to appropriately assess and refer victims to service providers. The Mucenieki Center Pilot Project was fully funded by a SEED grant of $40,000, and IOFA received another SEED grant of $60,000 for its "Prevention, Investigation & Repatriation of Victims of Human Trafficking, Baltic State Initiative in Daugavpils" project. This project included two days of collaborative training for 20 representatives of various law enforcement agencies and 22 representatives from NGOs providing social services in Daugavpils region. As a result, the Daugavpils Anti-trafficking Working Group was established with 15 permanent members. Finally, the Marta Resource Center for Women (Marta Center) received a SEED grant of $48,600 to carry out a project aimed at the protection and rehabilitation of trafficking victims.
USG security assistance plays a vital role in promoting USG regional stability goals in and with Latvia. In FY 2005, Latvia received $9.46 million in FMF and $1.39 in IMET assistance funds. FMF is largely directed toward: improving individual soldier defense capabilities by providing night-vision devices, high-mobility multi-purpose wheeled vehicles (HMMWVs), communications equipment; supporting a regional airspace initiative; providing long-term contractor technical assistance team to provide direct support to the Ministry of Defense in the areas of command and control, communications, computers and intelligence (C4I); and augmenting brigade force structure development and logistics. IMET training for Latvia has focused on professional and technical training for junior members of the Latvian defense establishment and leadership and management courses for mid-level and senior personnel. Many senior personnel, including the current Land Forces Commander, Navy Commander, and a former Minister of Defense, have received U.S. training through the IMET Program. Latvia's emphasis on indigenous English language training (ELT) has virtually eliminated the need to use IMET funds for ELT, setting it apart from many other countries. Overall, Latvia sends about 55 students per year to the United States for training and annually hosts annually an average of one Mobile Education Team from the Defense Institute of International Legal Studies (DILLS).
Another important regional security program is the successful EXBS Assistance Program, which has trained hundreds of Latvian security police, border guards and customs officers, among others, in interdicting shipments of dual-use goods and weapons of mass destruction. Interdictions of Soviet-era military equipment, and some more modern avionics systems, bound for countries like Iran and China with misleading or fraudulent shipping manifests, underscore the success of this program. The experience the Latvians have gained in detecting these types of items has also paid off in the fight against more commonplace types of contraband. Now that Latvia forms part of the EU's eastern border with Russia, the professionalism of Latvia's border control authorities takes on even more visibility and significance. The EXBS program in the Baltic States ends in 2006.
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