Sunday, October 01, 2006
The world is not very interested
Saturday, September 30, 2006
Latvia's economy: good news and bad news
The growing economy has generated more money for the Latvian government and the ongoing election campaign is full of promises to use this money to increase salaries, retirement benefits and to reduce taxes, so that everyone benefits.
The Bank of Latvia is, however, warning of "unwelcome macroeconomic imbalances". And today's "Diena" has two one-paragraph stories (hidden on page 3) which make me think that this warning is a major understatement. First, according to Bank of Latvia, the foreign debt of Latvia has reached 10.583 billion lats (about 21 billion US $). That's about 110% of Latvia's annual economic output (GDP). Most of the debt is owed by Latvian individuals and companies. Government debt is only 639 million, the remaining 9.956 billion are privately owed.
Second, Latvia keeps borrowing at an alarming rate. Latvia's current account deficit reached 17.9% of GDP in the 2nd quarter of 2006. That means that 17.9% of economic activity in Latvia was financed by money that is either borrowed or invested from abroad (mostly borrowed, I think). I am not an economist (my knowledge of economy is mainly due to reading Dienas Biznesss and other financial newspapers) but these numbers look scary to me. There is no way how foreign banks will keep lending money to Latvia at this rate. Bank of Latvia website has an article which compares the present Latvia to Czech Republic which had a three-year economic slowdown in late 1990s, after the current account deficit reaching 7% of GDP in 1997. Latvia's deficit is already much larger than that, which suggests that the consequences may be more severe as well. (Again, I am not an economist, this is mainly my numerical common sense considerations.)
I am trying to follow the ongoing crisis in Hungary, to see if there are any analogies. The Hungarian prime minister just admitted that he has been "lying about economy day and night for past two years" to get reelected and announced an unprecedented austerity program, with salary cuts and massive layoffs of government employees. I talked to a Hungarian colleague (who currently lives outside Hungary) yesterday. He was unhappy and told me about Socialist vs. Fidesz political dynamics of Hungary. I was, however, more interested in the causes of economic troubles rather than the current political crisis and he was not able to tell much about that. It is also difficult to find good sources about the Hungarian situation on the web. (Again, it's because I am more interested in the economic analysis, rather than pictures of street riots.)
My main question is: what does this all mean for Latvia? Edward Hugh, an economist and one of bloggers at the Fistful of Euros, comments: "Baltic states look to be problematic but not today and tomorrow". One can either be worried by the first part or consoled by the second part. I am more in the first category but I hope I am wrong...
Friday, September 29, 2006
Two new opinion polls
Tautas Partija 12.6% (-0.7%)
ZZS 12.3% (+0.2%)
PCTVL 8.8% (-0.4%)
Jaunais Laiks 7.1% (-1.0%)
LPP/LC 5.9% (-0.4%)
TB/LNNK 5.8% (unch.)
Saskanas Centrs 5.7% (unch.)
Social Democrats 3.5% (+0.2%)
Projected seats in the parliament:
Tautas Partija 22 (unch.)
ZZS 21 (+1)
PCTVL 15 (unch.)
Jaunais Laiks 12 (-3)
LPP/LC 10 (unch.)
TB/LNNK 10 (+1)
Saskanas Centrs 10 (+1)
Jaunais Laiks decline is now completely confirmed. And a poll by the competing company, SKDS. (Unofficial numbers, leaked to media. Have nonsense allegations by Dzimtene had so much effect on polling companies?)
ZZS 14.8% (+3.6%)
Jaunais Laiks 9.5% (-2.5%)
Tautas Partija 9.5% (+0.6%)
PCTVL 8.1% (-1.2%)
TB/LNNK 5% (-1.0%)
Saskanas Centrs 3.8% (+1.3%)
Social Democrats 3.5% (-0.3%)
LPP/LC 3.1% (-0.4%)
Wednesday, September 27, 2006
Good news
Excellent! My experience is that Canadian consulates are generally more reasonable than US consulates (this story is one example and I know others). Still, applications for Canadian visas are only processed in Warsaw (not Riga) and mailing a passport to Poland can be time-consuming. Hopefully, we will no longer have to do that in a few years. If only United States could follow Canada in this ....
UPDATE: Estonians are one step ahead. They can already travel to Canada without visa.
Sunday, September 24, 2006
New Estonian president
Close to 10% of population of Baltic states became refugees in 1944 and 1945. My father's family, small farmers from Central Latvia, nearly left the country as well, but they changed their mind a few hours before boarding a ship for Sweden. Some of the former refugees and their children came back in 1990s and some of them are very influential in the local politics. All three of the current Baltic presidents (Ilves, Vaira Vike-Freiberga and Valdas Adamkus) are former refugees.
I expect Ilves will be a very good president for Estonia. In Estonian and Latvian political system, the president's main role is to represent the country abroad. (The domestic political power belongs to the prime minister.) After living abroad for 40 years, Ilves knows the world outside Estonia very well. And he did well as the minister of foreign affairs for Estonia in 1990s. During the last years, Vaira Vike-Freiberga was the most internationally active president in the Baltic states and the unofficial spokesperson for the region. In a few months, this role will likely pass to Ilves. (Of course, it depends on whom the Latvians elect as Vike-Freiberga's successor. But how many of our candidates can match Ilves?)
Estonia has a fairly unusual (read: bizarre) election system. First, the parliament votes. If a candidate gets a 2/3 supermajority in the parliament, he/she is elected. (That has never happened so far.) Otherwise, the election goes to the Electoral College, which is composed of all the members of parliament and one representative from each municipal government. (Yes, Tallinn (population 400,000) and Ruhnu (known in Latvian as Ronu sala, population less than 100) both have one representative each. As a result, Electoral College is completely controlled by rural Estonia.)
This system was put in place in early 1990s. I was told that it was designed to prevent a specific person, the ex-communist Arnold Ruutel, from winning the presidency. The designers of the system thought that Ruutel could win a majority in the parliament but not in the Electoral College. That was a miscalculation. In 2001, Ruutel won the Electoral College. (It's amusing to watch how those tricks with electoral system can backfire... Ruutel might have lost a simple majority vote in the parliament in 2001.)
The election went to the Electoral College this time, as well. For a while, Estonian media were trying to guess which members of College will vote which way. Both Ilves and Ruutel camps claimed they had a majority of the Electoral College on their side. At the end, Ilves won, 174-162.
Saturday, September 23, 2006
September opinion poll
Meanwhile, Latvijas Fakti have released their September poll. Jaunais Laiks has dropped a little bit more, which confirms that the drop in August poll was not a statistical error. The numbers are:
Tautas Partija 13.3% (+3.5%)
ZZS 12.1% (+0.6%)
PCTVL 9.2% (-1.2%)
Jaunais Laiks 9.2% (-0.3%)
LPP/LC 6.3% (+1.2%)
TB/LNNK 5.8% (-0.8%)
Saskanas Centrs 5.7% (+1.0%)
Social Democrats 3.3% (-0.5%)
Projected seats in the parliament:
Tautas Partija 22 (+6)
ZZS 20 (+1)
PCTVL 15 (-2)
Jaunais Laiks 15 (unchanged)
LPP/LC 10 (+2)
TB/LNNK 9 (-2)
Saskanas Centrs 9 (+1)
Social Democrats 0 (-6)
The change is compared to August poll.
For the first time, the current minority government (TP+ZZS+LPP/LC) is projected to win more than a half of seats (52 out of 100), contrary to the Eastern European trend of voting out the government at every election. But I still think that "let's vote this corrupt government out" mood is going to prevail, once again. But who is going to benefit from it? Jaunais Laiks is no longer the anti-corruption outsider party and Social Democrats have their share of scandals from 2001-2005 Riga city government. Senior Citizen Party? They are still at 1.4% in the opinion poll but who knows...
Saturday, September 16, 2006
It's official:Vaira Vike-Freiberga is running for UN Secretary General
Thursday, September 07, 2006
Latvian presidency candidates
Unofficially, 6-7 other candidates are discussed. Last week, I read an interview by Martins Bondars, a long-time aide to Vaira Vike-Freiberga. The Latvian president is elected by the parliament and the behind-the-scenes consultations about candidates are going on. The 7 leading candidates mentioned by Bondars are:
- Sandra Kalniete (1953) - one of leaders of Latvian independence movement in late 1980s, then embassador to several countries, then the minister for foreign affairs from 2002 to 2004.
- Andris Piebalgs (1957) - a slightly lower-profile member of the independence movement who also became an embassador and is now the Energy Commisionar for the European Commision.
- Ojars Kalnins (1949) - Latvian American activist, Latvia's embassador to US from 1993 to 1999, now leads the Latvian Institute, an organization devoted to promoting Latvia's image abroad. (Curious fact: the previous head of Latvian Institute was Vaira Vike-Freiberga, prior to her being elected as the president.)
- Ivars Lacis (1949) - professor of physics, the current rector (chancellor) of University of Latvia.
- Artis Pabriks (1966) - originally political scientist with Ph.D. from University of Aarhus (Denmark), currently the minister of foreign affairs of Latvia.
- Janis Jurkans (1946) - the first minister of foreign affairs for Latvia. Has recently claimed that he plans to quit politics.
- Zaneta Ozolina (1957) - political scientist, aide to Vaira Vike-Freiberga.
The shortlist is of surprisingly high quality (compared to say, candidates nominated by various parties in 1999). I would be happy with any of the first five candidates. I would not like to have Jurkans as the president, though, despite myself having voted for him in parliamentary election once. I know nearly nothing about Ozolina.
Sandra Kalniete belongs to Jaunais Laiks (New Era) party. Artis Pabriks belongs to Tautas Partija (People's Party). Janis Jurkans belongs (or used to belong) to Tautas Saskanas Partija (People's Harmony party). The rest of candidates are non-partisan and have no obvious links to a particular political party. In Latvian politics, that may actually be an advantage. If the next parliament is as fractured as this one, the candidate will need support from at least 3 different parties to win. And many political parties may find it easier to support a neutral candidate than someone from another party. (Particularly, if it's a party they are not on good terms with. Sandra Kalniete may have hurt her chances by joining New Era a few months ago.) That is how Vaira Vike-Freiberga was elected in 1999. Almost no one was voting for another party's candidate and then she emerged as a neutral figure who could draw support from 3 parties.
August opinion poll comments
Second, the big story is Jaunais Laiks (New Era) falling from the first place in July to the fourth place in August. Neatkariga Rita Avize (NRA), a newspaper hostile to New Era, credits the fall to their publication of transcripts of phone conversations between a businessmen who was being investigated by the tax service and senior New Era members. The businessmen was seeking for a help against the investigation and he was getting somewhat symphatetic response from New Era people. New Era Party has the same opinion about the reasons why they fall to the fourth place in the opinion poll, except that they call it as a "smear campaign by NRA".
I think they both may be reading too much into a small change in polls. New Era numbers have declined only by 1.3%. For a poll of 1000 people, that's 13 people and the probability of polling company accidentially choosing 13 less supporters of New Era this time is not the small. According to a calculation by this blogger, the probability of such event is 5-10%, meaning that New Era numbers would get underestimated by 1.3% once every 10-20 months. As long as there isn't another opinion poll confirming the change, it may just be random noise in data.
Tuesday, September 05, 2006
August opinion poll
ZZS 11.5% (+1.1%)
PCTVL 10.4% (unch.)
Tautas Partija 9.8% (+0.9%)
Jaunais Laiks 9.5% (-1.3%)
TB/LNNK 6.6% (-1.4%)
LPP/LC 4.9% (-0.2%)
Saskanas Centrs 4.7% (-0.6%)
Social Democrats 3.8% (+0.7%)
Projected seats in the parliament:
ZZS 19 (+2)
PCTVL 17 (-1)
Tautas Partija 16 (+1)
Jaunais Laiks 15 (-4)
TB/LNNK 11 (-3)
LPP/LC 8 (unch.)
Saskanas Centrs 8 (-1)
Social Democrats 6 (+6)
The previous poll is here. There are some interesting events surrounding the current poll (the numbers are unofficial because the polling company refused to release them!). More on that in a few days.
Tuesday, August 08, 2006
US visa problem: completely outrageous
A music teacher from Talsi and four of her students were invited to give a sequence of concerts in US, to Latvian-American communities. On June 28, they went to US embassy in Riga for visa interviews. All of them were denied visas. The most outrageous aspect is that one of the students was not even asked a single question! The consular official just took her fingerprints, looked at her application form and denied the visa!
Supposedly, the official was concerned about them not returning to Latvia after their visit. This is a complete nonsense. Latvian American organizations have invited speakers and arts performers from Latvia many times over the last 15 years and I do not know of any instances when a person invited by a major Latvian American organization has not returned to Latvia.
Now, this is not the only case when a Latvian has been denied a US visa without a good reason. I know other cases, both among my friends (and friends of friends) and among people about whom I would read in newspapers. (One newspaper story from 4 years ago: Martins Karsums, the top junior hockey star in Latvia was denied visa when he wanted to play in a junior team in US. Luckily, that did not hurt his hockey career too much and he was still drafted by NHL in 2005.) What makes this case special (specially outrageous, that is) is the official denying visa without asking a single question. Does he think he can read minds? Or does he deny applications based on his mood?
Sunday, July 30, 2006
July opinion poll
Jaunais laiks 10.8% (-0.9%)
PCTVL 10.4% (-0.2%)
ZZS 9.8% (-0.9%)
Tautas Partija 9% (-1.1%)
TB/LNNK 8% (-0.2%)
Saskanas Centrs 5.3% (-0.5%)
LC/LPP 5.1% (-0.4%)
This translates to the following numbers of seats in parliament:
Jaunais laiks 19 (unchanged)
PCTVL 18 (+1)
ZZS 17 (unchanged)
Tautas Partija 15 (-1)
TB/LNNK 14 (+1)
Saskanas Centrs 9 (unchanged)
LC/LPP 8 (-1)
Almost nothing has changed.
Saturday, July 22, 2006
Why do the journalists like the negative headlines so much?
Last year, the number of suicides in Latvia exceeded the number of deaths in traffic accidents
Scary, isn't it? I looked up the actual report by Central Statistics Office. Compared to five years ago, the number of suicides in Latvia has declined by 27% and the number of deaths in traffic accidents has declined by 30%.
Why do the journalists like the negative headlines so much?
UPDATE: I posted this and realized that both of my previous posts were about corruption. Well, maybe this weblogger also favors negative topics.
Lembergs
Politics section: Union of Farmers and Greens nominates Lembergs as their candidate for Prime Minister
Crime section: Prosecutor's office charges Aivars Lembergs with bribery and money laundering
Lembergs has been banned from leaving Latvia without prosecutor's permission and may have to pay a bail of 1 million lats (1.4 million euros). It's a huge bail but Lembergs' personal wealth is in tens of millions of lats.
The timing of events is quite interesting. Most of the charges are about events that took place from 1993 to 1995. Prosecutors were not in a hurry to charge Lembergs while he was a mayor of a mid-size town. But, with Lembergs having political ambitions on a national level and election coming up in 2.5 months, things changed and old allegations are now prosecuted vigorously.
Lembergs is dismissing the charges as politically motivated. Well, the charges may not be politically motivated but the decision to bring them up now (after not trying to charge him in previous 10 years) probably is.
"Everyone investigating everyone on corruption charges" remains the main theme for October 2006 elections.
Saturday, July 08, 2006
New Era?
This week, I saw two news stories on what the New Era Party has become:
The first story reveals interesting coincidences between decisions by national and city governments and large donations to the New Era Party. One example. "Ionica" company signs a 70,000 lat (100,000 euro) contract with city of Riga (whose mayor, Aigars Aksenoks belongs to the New Era Party) for creating an open-air skating rink. On the same day, the owner of the company donates 9,960 lats to the New Era Party. The article from "Diena" newspaper reveals several other stories similar to this one.
The second story involves the city government of Jurmala, a sea-side resort town. The city is lead by mayor Inese Aizstrauta who used to belong to New Era Party, until she was expelled from it a few days ago. The conflict between her and the party was over the city development plan which determines which parts of the city are open to new construction. Many parts of Jurmala are fairly prestigious places to live. Free land is scarce and a lot of it is protected for enviromental reasons. As a result, permits to build new buildings can be very valuable.
According to Aizstrauta, she was pressured by Dans Titavs (an influential New Era member who used to be one of two aides to New Era's prime minister Repse) to allow several construction projects to go ahead. Aizstrauta-lead city council voted for the development plan without Titavs-supported projects. In a few days, New Era party declared that the development plan was corrupt and expelled Aizstrauta, together with two other New Era city council members, from the party.
Meet the New Era. Same as Old Era?
Aizstrauta says that she joined the party hoping to change Latvia for better. But later, she discovered that there is "another New Era" of people who abuse popular trust in selfish interests. Besides Titavs, she named party's secretary-general Edgars Jaunups as one of those people.
For myself, I will be even more skeptical of political parties that promise an end to "politics as usual".
Sunday, July 02, 2006
June opinion poll
Jaunais laiks 11.7% (+1%)
ZZS 10.7% (+0.2%)
PCTVL 10.6% (+0.9%)
TP 10.1% (-0.2%)
TB/LNNK 8.2% (+0.3%)
Saskanas centrs 5.8% (+0.7%)
LC/LPP 5.5% (+1.7%)
Social Democrats 3.5% (+0.1%)
This translates to the following number of seats in the parliament:
Jaunais laiks 19
ZZS 17
PCTVL 17
TP 16
TB/LNNK 13
Saskanas Centrs 9
LC/LPP 9
Social Democrats are slightly short of 5% threshold. (Since the poll includes people who are undecided or will skip the election, 3.5% actually means 4.9% of those who have decided to vote for one of parties.)
Last month's poll is here.
Friday, June 09, 2006
Having a Latvian name may be a problem
Dzintra Janavs, who has been a judge for 20 years, lost reelection to Lynn Diane Olson, a bagel store owner who almost has not practiced law in last 10 years. Janavs was rated "exceptionally well qualified" by Los Angeles County Bar Association (one of only 2 candidates with that ranking, out of 28 candidates for 18 judgeships), Olson was rated "not qualified". The legal community is in shock. Observers speculate that some voters may have preferred a candidate with a standard English name over the one with a non-English name of unknown origin.
Ouch. I thought Los Angeles was an enlightened multicultural city in which having or not having a common English name does not matter.
H/t: Volokh Conspiracy
Thursday, June 08, 2006
Powerful speech
Pirms piecpadsmit gadiem Latvija kopā ar kaimiņvalstim Igauniju un Lietuvu atguva savu neatkarību pēc piecdesmit Padomju okupācijas gadiem. Tas tika panākts nevardarbīgā ceļā caur Baltijas dziesmoto revolūciju, pateicoties vienīgi šo tautu drosmei un apņēmībai. Tās bija gatavas stāties pretī padomju šautenēm un tankiem tikai ar saviem neapbruņotajiem cilvēkiem un dziļu pārliecību par savām tiesībām, labi apzinoties, ka šīs šautenes un tanki viņus jebkurā brīdī var satriekt, kā tie bija satriekuši tik daudzus pirms tam.Full text: Latvian, English. There is more on Latvia and our history there. No one says it better than Vaira Vike-Freiberga.
Fifteen years ago Latvia, along with neighboring Estonia and Lithuania, regained its independence after fifty years of Soviet occupation. The Baltic Singing Revolution achieved this by non-violent means, by the sheer courage and determination of the peoples of these countries. They were ready to face Soviet guns and tanks with nothing but their unarmed bodies and the deep conviction of their rights, knowing full well that, at any moment, these guns and tanks might crush them as they had crushed so many before.
I first read the reports in the Latvian media and wasn't impressed. Then, I found the text of the speech and it was much more impressive than the reports.
Vike-Freiberga also met with Condoleeza Rice and discussed, among other things, the possibility that Latvia may be added to countries whose citizens do not need visa to visit US. There is a pending amendment to US immigration law that would add Poland to that list. If Latvia would be there together with Poland, it would save a lot of time for Latvians travelling to US. US visa procedures can be quite time-consuming, as I have experienced myself.
Wednesday, June 07, 2006
In the news
In other news, Linda Murniece of the oppositionary Jaunais Laiks (New Era) party has become the chairwoman of Anti-corruption Committee of the Latvian parliament. This may mean even more investigations for the Union of Farmers and Greens, Lembergs and everyone else around the current coalition government. "Everyone investigating everyone on corruption charges" seems to be the theme for this election campaign.
Saturday, June 03, 2006
May opinion poll
Jaunais Laiks 10.7%
Zalo un Zemnieku Savieniba (ZZS) 10.5%
Tautas Partija (TP) 10.3%
PCTVL 9.7%
Tevzemei un Brivibai/LNNK 7.9%
Saskanas Centrs 5.1%
Latvijas Cels/Pirma Partija 3.8%
Social Democrats 3.4%
This would translate to following numbers of seats in Parliament:
Jaunais Laiks 17
ZZS 17
TP 17
PCTVL 16
Tevzemei un Brivibai/LNNK 13
Saskanas Centrs 8
LC/LPP 6
Social Democrats 6
Disclaimer: Polls are provided for entertainment purposes only. The popularity of political parties may change significantly between now and the upcoming election in October 2006.
