This document discusses human capital as the key driver of economic development in Latvia. It finds that while Latvia's population and workforce are projected to decrease in the coming decades, there are still substantial internal labor reserves that could be activated, such as among the young and upper-middle aged men. Improving health outcomes and reducing excess mortality is identified as the most promising way to stop depopulation trends. Additionally, public spending on education and healthcare in Latvia has been modest and outcomes could be improved by increasing efficiency. Attracting high-skilled immigration through improved quality of life is also discussed but perceived livability in Riga does not yet lead to mass immigration.
Barriers to Economic Growth and Developmenttutor2u
This is a revision presentation covering examples of barriers ti economic growth and development in emerging and developing countries. In their revision students should consider factors such as:
Poor infrastructure
Human capital inadequacies
Primary product dependency
Declining terms of trade
Savings gap; inadequate capital accumulation
Foreign currency gap and capital flight
Corruption, poor governance, impact of civil war
Population issues
Barriers to Economic Growth and Developmenttutor2u
This is a revision presentation covering examples of barriers ti economic growth and development in emerging and developing countries. In their revision students should consider factors such as:
Poor infrastructure
Human capital inadequacies
Primary product dependency
Declining terms of trade
Savings gap; inadequate capital accumulation
Foreign currency gap and capital flight
Corruption, poor governance, impact of civil war
Population issues
The classical growth theory argues that economic growth will decrease or end because of an increasing population and limited resources Classical growth theory economists believed that temporary increases in real GDP per person would cause a population explosion that would consequently decrease real GDP.
A presentation paper on Economic Inequality in Developing Country. The paper shows how the economic inequality in developing country is, how it is measured, and how it affects the economy of a developing country. By Sadman Joa.
Since pollution is an externality firms will not undertake to control their pollution. The answer is in government regulations. Coase argues that in perfect competition with laissez faire, govt regulation is not needed. Instead bargaining between the polluters and their victims can lead to an optimal situation. But this pre supposes equality in bargaining, and does not take note of ecological consequences of pollution.
The classical growth theory argues that economic growth will decrease or end because of an increasing population and limited resources Classical growth theory economists believed that temporary increases in real GDP per person would cause a population explosion that would consequently decrease real GDP.
A presentation paper on Economic Inequality in Developing Country. The paper shows how the economic inequality in developing country is, how it is measured, and how it affects the economy of a developing country. By Sadman Joa.
Since pollution is an externality firms will not undertake to control their pollution. The answer is in government regulations. Coase argues that in perfect competition with laissez faire, govt regulation is not needed. Instead bargaining between the polluters and their victims can lead to an optimal situation. But this pre supposes equality in bargaining, and does not take note of ecological consequences of pollution.
Employment and labour market during and after covid 19 pandemicLatvijas Banka
Introductory report to the Meeting of the Education, Science and Culture Committee of the Baltic Assembly “Employment and labour market during and after Covid-19 pandemic” by Oļegs Krasnopjorovs, economist, Latvijas Banka
Latvijas ekonomiskā situācija, darba tirgus un prognozesLatvijas Banka
Latvijas Bankas ekonomista Oļega Krasnopjorova prezentācija, kas izmantota 2019. gada 23. maijā Rīgā notikušā starptautiskā seminārā par darba tirgus izaicinājumiem.
Luxembourg is an advanced economy with the highest per capita income in the OECD, reflecting the dynamic services sector, notably in banking and other financial services.
The OECD is examining how the two global mega-trends of population ageing and rising inequalities have been developing and interacting, both within and across generations. This work, and specifically a new report “Preventing Ageing Unequally” (to be released on 18 October), will take a life-course perspective, showing how inequalities in education, health, employment and income interact, and can result in large lifetime disparities across different groups. This discussion will focus on a policy agenda for more inclusive ageing to prevent, mitigate and cope with inequalities and ensure a better retirement for all, with policies coordinated across family, education, employment, social ministries and agencies.
Latvijas tautsaimniecības makroekonomiskā attīstība | Septembris 2023Latvijas Banka
Latvijas Bankas prezidenta Mārtiņa Kazāka un Monetārās politikas pārvaldes vadītāja Ulda Rutkastes prezentācija 2023. gada 29. septembrī par jaunākajām ekonomikas prognozēm.
Latvijas Bankas Finanšu pratības daļas vadītājas Aijas Brikšes prezentācija Rīgas Izglītības un informatīvi metodiskā centra seminārā skolotājiem "Drošs internets un droša digitālā finanšu pratība" 2023. gada 29. augustā.
Latvijas Bankas Makroekonomikas analīzes daļas galvenās ekonomistes Baibas Brusbārdes prezentācija seminārā "Aktualitātes ekonomikā" 2023. gada 24. augustā.
Latvijas Bankas Monetārās politikas analīzes daļas galvenās ekonomistes Anetes Kravinskas prezentācija seminārā "Aktualitātes ekonomikā" 2023. gada 24. augustā.
Latvijas Bankas Makroekonomikas analīzes daļas galvenā ekonomistes Dainas Paulas prezentācija seminārā "Aktualitātes ekonomikā" 2023. gada 24. augustā.
Latvijas tautsaimniecības makroekonomiskā attīstība | Marts 2023Latvijas Banka
Latvijas Bankas prezidenta Mārtiņa Kazāka un Monetārās politikas pārvaldes vadītāja Ulda Rutkastes prezentācija 2023. gada 31. martā par jaunākajām ekonomikas prognozēm.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
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1. Human capital
as the key to
economic development
Conference «Human Capital As Key For Economic Growth»
01.11.2023.
Dr. Oļegs Krasnopjorovs
2. Human capital is one of the key drivers of economic development
2
Favourable
business
environment:
public and
private
institutions etc.
Physical capital:
Production tools, infrastructure
Natural resources:
Land, food and energy
Human capital:
Both quantity and quality matters
(education, health etc.).
Technical progress:
depends on human capital,
can influence physical capital
and use of natural resources.
3. Total population (thousand) Share of working age population (%; age 15-64)
1300
1400
1500
1600
1700
1800
1900
2022 2029 2036 2043 2050
Baseline Lower fertility Lower mortality
Higher migration Lower migration No migration
The quantity of human capital in Latvia
is likely to decrease further according to all scenarios
Source: Eurostat projections (EUROPOP-2023).
52
55
58
61
64
2022 2029 2036 2043 2050
Baseline Lower fertility Lower mortality
Higher migration Lower migration No migration
4. Fertility rate in the EU countries
(in 2022)
Net migration in Latvia
(thousand)
1.6 1.6
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
France
Czechia
Romania
Ireland
Denmark
Sweden
Slovenia
Slovakia
Netherlands
Estonia
Hungary
Belgium
Bulgaria
Germany
Croatia
Latvia
EU
average
Austria
Finland
Greece
Cyprus
Luxembourg
Lithuania
Portugal
Poland
Italy
Spain
Malta
-40
-30
-20
-10
0
10
20
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
Probability of dying at the age of 60
across the EU countries (%; in 2022)
1.7
0.8
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Bulgaria
Romania
Hungary
Latvia
Lithuania
Slovakia
Poland
Estonia
Czechia
Croatia
Greece
EU
average
Slovenia
Germany
Portugal
Denmark
France
Austria
Belgium
Netherlands
Ireland
Spain
Cyprus
Finland
Luxembourg
Malta
Italy
Sweden
Combatting excess mortality is the most promising tool to stop depopulation trend
(as fertility rate is close to the EU average and net migration is near zero)
Source: Central Statistical Bureau of Latvia and Eurostat data.
4
Ukraine
5. Excess mortality has a non-negligible impact on the economy. Substantial gains, if
Latvian healthcare system would have improved already in the beginning of 2000-ties
4 000
Number of saved
lives every year
60 000
Latvian population today
would be larger by this
amount
Population Employment Economic growth (GDP)
40 000
there would be more
employees
0.2% every year
faster economic growth
rate would be achieved
4%
bigger GDP in Latvia
would be
Source: author’s calculations based on Eurostat data.
Macroeconomic impact assessment of excess mortality in Latvia is based on comparison of mortality rates for each cohort (until age 65) between Latvia
and a group of 6 peer countries (Belgium, Denmark, Germany, France, Netherlands, UK) over 2002-2019 (before Covid-19 pandemics).
7. Official and broad unemployment measures (% of economically active population)
Official and broad unemployment measures are close to historical minimums as well
Source: State Employment Agency and Central Statistical Bureau of Latvia data; author’s calculations.
7
0
5
10
15
20
25
30
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Registered unemployment (SEA)
Job seekers rate (CSB)
+ don't believe in finding work
+ ready to start work, but not seek for it; or opposite
+ part-time workers which want to find a full-time job
Official
unemployment
8. However, internal labour reserves are still substantial and must be activated
Age Men Women
15-19 12.9 13.5
20-24 4.3 4.7
25-29 1.7 2.0
30-34 2.8 1.5
35-39 1.2
40-44 2.3 2.1
45-49 4.7 2.5
50-54 6.0 0.5
55-59 5.5 0.5
60-64 3.9
Total 45.4 27.4
72.8
Internal labour reserves in Latvia
(thousand; in 2022)
Youth:
Low prevalence of vocational education and apprenticeships.
Upper-middle-aged men:
Outdated professional skills, low digital skills,
low prevalence of lifelong learning,
deterioration of health condition.
Internal labour reserves represent additional employment if the employment rate in the respective age groups
reach the average level of the EU6 countries.. EU6 countries are Germany, Denmark, Netherlands, Ireland, Sweden, Estonia.
Source: author’s calculations based on Eurostat data. For methodology see: Krasnopjorovs Olegs (2019). «Anatomy of labour reserves in the Baltic countries: a snapshot 15 years
after the EU accession». Latvijas Banka Discussion Paper #2/2019. https://datnes.latvijasbanka.lv/papers/discussion/dp_2_2019-en.pdf
~7% of economically active population
9. Aim to activate internal labour reserves is ambitious, but real
Source: author’s calculations based on Eurostat data. For methodology see: Krasnopjorovs Olegs (2019). «Anatomy of labour reserves in the Baltic countries:
a snapshot 15 years after the EU accession». Latvijas Banka Discussion Paper #2/2019. https://datnes.latvijasbanka.lv/papers/discussion/dp_2_2019-en.pdf
9
Men Total
population
Employed Internal labour
reserves
Number of non-employed
decreases by:
45-49 61.5 50.9 4.7 44%
50-54 60.9 47.8 6.0 46%
55-59 58.1 43.3 5.5 37%
60-64 58.5 36.3 3.9 17%
Latvian upper-middle-aged men in 2022 (thousand)
Latvian young men in 2022 (thousand)
Men Total
population
Employed Internal labour
reserves
Number of non-
employed decreases by:
15-19 48.8 3.5 12.9 29%
20-24 42.3 25.1 4.3 25%
Internal labour reserves represent additional employment if the employment rate in the respective age groups
reach the average level of the EU6 countries. EU6 countries are Germany, Denmark, Netherlands, Ireland, Sweden, Estonia.
10. Participated in education or training in the last 4 weeks
(% of population; in 2022)
Population with digital skills at least at the basic level
(% of population; in 2021)
Latvian adults have less involvement in lifelong learning and lower digital skills
than in high employment countries (EU6)
Source: Eurostat data, author’s calculations.
10
0
5
10
15
20
25
30
35
25-34 35-44 45-54 55-64
EU6 Latvia
0
10
20
30
40
50
60
70
80
90
16-24 25-34 35-44 45-54 55-64 65-74
EU6 Latvia
EU6 countries are Germany, Denmark, Netherlands, Ireland, Sweden, Estonia.
11. Life expectancy of 50 years old men (in 2021)
Health status self-assessment of men aged 45-64
(index; in 2021)
Raising the retirement age is not a panacea
if employment is hindered by health problems
Source: Eurostat data, author’s calculations.
11
0
20
40
60
80
100
120
Greece
Ireland
Romania
Cyprus
Malta
Italy
Luxembourg
Belgium
Sweden
Czechia
France
Spain
Slovenia
Bulgaria
Netherlands
Austria
Denmark
Croatia
Finland
Germany
Slovakia
Poland
Hungary
Portugal
Estonia
Latvia
Lithuania
200: very good
100: good
0: fair
-100: bad
-200: very bad
0
5
10
15
20
25
30
35
Sweden
Malta
Ireland
Spain
Italy
Luxembourg
France
Belgium
Netherlands
Finland
Denmark
Cyprus
Austria
Portugal
Germany
Greece
Slovenia
Czechia
Croatia
Estonia
Poland
Slovakia
Lithuania
Hungary
Romania
Latvia
Bulgaria
Good health Bad health
12. Public spending on education and skill set of graduates
Modest education and healthcare quality outcomes may be related not only to
lower public spending, but also to lower system efficiency
12
BE
BG
CZ
DK
DE
EE
IE
GR
SP
FR
CR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SL
SK
FI
SE
30
40
50
60
70
80
90
3 4 5 6 7
Skill
set
of
graduates
(0
–
100
points,
in
2019)
Public spending on education, % of GDP
(2015 – 2019 average)
Country sample: European Union countries.
Source: Eurostat and Global Competitiveness index data, author’s calculations.
Public spending on healthcare and healthy life expectancy
BE
BG
CZ
DK
DE
EE
IE
GR
SP
FR
CR
IT
CY
LV
LT
LU
HU
MT
NL
AT
PL
PT
RO
SL
SK
FI
SE
5
10
15
20
25
30
3 4 5 6 7 8 9
Healthy
life
expectancy
for
50-year-old
men
(years;
in
2020)
Public spending on healthcare, % of GDP
(2016 – 2020 average)
Efficiency
frontier
Efficiency
frontier
13. Beveridge curve in Latvian regions
(over 2016 – 2022)
Employment rate (%; age 15-74; in 2022)
Labour market regional differences are still wide
Source: Central Statistical Bureau of Latvia data, author’s calculations.
13
~ Germany
~ Spain
54
56
58
60
62
64
66
68
Pieriga
Riga
Zemgale
Vidzeme
Kurzeme
Latgale
=> Latgale region has the least efficient labour market.
14. Employment rate (%; age 15-74)
Employment rate ethnic gap decomposition
(percentage points)
45
50
55
60
65
70
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Latvians Non-Latvians
0
2
4
6
8
10
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Higher unemployment rate of Non-Latvians
Higher labour market participation rate of Latvians
Employment rate ethnic gap (pp.)
Employment ethnic differences are still persistent
Source: Central Statistical Bureau of Latvia data, author’s calculations.
14
15. Country is like a big factory which
main aim is to maximize output
(economic growth rate).
Economic growth is a tool to improve human capital,
not the other way around?
People are like machine tools,
subject to depreciation.
Just as machine tools should be
replaced to maximize output,
people can also be "written off" at
age 65 or even less.
Economic output serves people,
not the other way around.
The size of the economy (economic
growth rate) is just a tool to improve
the quality of life.
Population ageing is an important
achievement of human civilization,
meaning longer and healthier lives
(=broader opportunities for self-
realization) for each of us.
Old economic paradigm New economic paradigm
Population ageing and labour shortage
slows down the economic growth rate.
Moderate labour shortage encourage technical
progress and therefore also productivity and
wage growth. It is an opportunity to activate
internal labour reserves and return migration.
Source: Krasnopjorovs Oļegs (2018). Cilvēks kā valsts galvenais resurss, dārgums un mērķis.
16. Gross Domestic Product per capita and quality of
life satisfaction in European cities (in 2019)
Urban life satisfaction and population change in the
European cities
Perceived quality of life in Riga does not yet lead to mass immigration
of highly qualified and creative people
Source: Krasnopjorovs Olegs (2022). «Ready for the next 820? Looking for the keys to paradise of Riga city».
Latvijas Banka Discussion Paper #2/2022. https://datnes.latvijasbanka.lv/diskusijas-materiali/DP_2_2022_Riga_12_04.pdf
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The quality of life index reflects several dimensions from the European Commission 2019
survey: safety, trust in people around, environmental pollution, infrastructure, governance,
public transport, good place to live for different population groups.
0: worst score among European cities; 100: best score.
17. Takeaways
Human capital is one of the key drivers of economic growth.
But perhaps economic growth is just a tool to improve the human capital.
Latvian population is likely to ↓ further over the medium term.
The most promising tool to stop this trend is to decrease excess mortality
(4 thousand lives saved and ↑ GDP growth rate by 0.2 pp. every year).
Despite unemployment rate is near its historical low, internal labour reserves are
still substantial and must be activated: young people, upper-middle aged men;
regional and ethnic differentials.
Modest human capital quality (education, healthcare) outcomes reflect both low
public spending and low system efficiency.
Only high-qualified immigration would raise living standards in the country, but
currently perceived quality of life in Riga city does not yet lead to mass
immigration of highly qualified and creative people.