This document evaluates the socioeconomic development of Latvian cities and towns using a development level-rate matrix. It analyzes 10 major cities and 12 towns with over 10,000 inhabitants using indexes to measure changes in income, unemployment, and population density from 1999-2008. The results show that cities within 50km of Riga generally have higher income levels and development rates. Some smaller cities like Valmiera, Cesis and Saldus also saw high growth. The analysis identifies opportunities to strengthen growth in places like Jekabpils, Liepaja, Daugavpils and Kraslava which have potential for higher development.

1. The evaluation of socioeconomic
development of Latvian cities and towns
using development level-rate matrix
Alise Vītola
Riga Technical University
Zintis Hermansons
Ministry of Regional Development
and Local Government
Riga, September 2010

2. Cities and towns in Latvia
• High degree of urbanisation – 70% of inhabitants live in cities and towns
• Wide network of 76 small and medium sized towns
• Monocentric development - dominancy of capital city Riga and it’s
surroundings
• Alternative growth poles - Liepaja, Ventspils, Jelgava, Daugavpils,
Rezekne, Valmiera
Source: SRDA Source: SRDA
Incomes of inhabitants (2009) Changes in number of inhabitants (2005-2010)
The evaluation of socioeconomic development of Latvian towns and cities
using development level-rate matrix

3. Regional policy in Latvia*
Promotion of polycentric development by
strengthening:
• competitiveness of growth poles
• functional networking of cities and towns
• urban-rural partnership
Preconditions for polycentric development:
• specialisation
• cooperation
• concentration of resources
Spatial perspective of “Latvia 2030”
stipulates
• levels of growth poles
• functional networks of growth poles
Source: Latvia 2030
* Sustainable Development Strategy for Latvia till 2030 (2010)
National Development Plan 2007-2013 (2006)
The evaluation of socioeconomic development of Latvian towns and cities
using development level-rate matrix

4. The study
• Purpose: to analyse socioeconomic development of major cities
and towns in Latvia in 10 years period (1999-2008)
• Object:
– 10 major cities – Riga (capital city), Daugavpils, Liepaja,
Jelgava, Jurmala, Ventspils, Rezekne, Valmiera, Jekabpils
and Ogre
– 12 towns with more than 10 000 inhabitants, four of them –
amalgamated municipalities
• Methodology: calculation of indexes and graphical analysis
using development level-rate matrix
• Data: local level statistics - income of inhabitants, unemployment
level and density of inhabitants
The evaluation of socioeconomic development of Latvian towns and cities
using development level-rate matrix

5. Indexes and matrix
Indexes : xi − ximin
• covering 10 year period Ii = (1)
• separate development level and
xi max − ximin
rate indexes for each indicator (1)
Ii
• aggregated indicator for the I =∑ (2)
overall socioeconomic n
development rate and level (2)
Matrix:
• x axis represents development
level and y axis – development rate
• horizontal axis crosses vertical axis
at 0,5
• “bubbles” represent the number of
inhabitants in cities and towns
The evaluation of socioeconomic development of Latvian towns and cities
using development level-rate matrix

6. Results: income
• Leader positions are taken by Riga and cities and towns in 50 km radius around it, as well as
Valmiera, Cēsis and Talsi
• Also some cities and towns with lower income level have high income increase rates – Saldus,
Jēkabpils
• Special attention should be paid to Kuldiga where the income increase rate is lower than
average, but the income lewel is rather low
The evaluation of socioeconomic development of Latvian towns and cities
using development level-rate matrix

7. Results: unemployment
• Higher unemplyment decrease rates are in the largest cities, except Riga (with the lowest
unemployment level), and in Kraslava (with the highest unemployment level)
• Higher unemplyment decrease rates are in cities and towns with higher unemployment level
and vice versa
• Exeptions – Dobele, Bauska and Kuldiga with moderate level of unemployment and lower
unemployment decrease rates
The evaluation of socioeconomic development of Latvian towns and cities
using development level-rate matrix

8. Results: density of inhabitants
• Higher density increase rates - in cities and towns in 70 km radius around Riga, as well as
Tukums, Saldus and Cēsis
• N.B.! The number of inhabitants increased only in Tukums, Sigulda and Jelgava. In Jurmala,
Ogre and Salaspils it remained unchanged
• Special attention should be paid to Ventspils which is rapidly loosing it’s inhabitants while it’s
density of inhabitants is very low
The evaluation of socioeconomic development of Latvian towns and cities
using development level-rate matrix

9. Results: overal development
• Leaders - cities and towns located in 70 km radius around capital city Riga, as well as Valmiera,
Dobele, Cesis and Saldus
• Special attention should be paid to:
– further exploration of growth potential of Jekabpils, Liepaja, Daugavpils and Kraslava (low
development level, high development rate)
– strengthening of growth potential of Kuldiga (low development rate and level)
– effective usage of existing resources in Ventspils (high development level, but the lowest
development rate)
The evaluation of socioeconomic development of Latvian towns and cities
using development level-rate matrix

10. vitola.alise@gmail.com
zintis.hermansons@raplm.gov.lv