As a small country in today’s globalized world, Latvia recognizes the importance of attracting foreign investment in order to sustain economic development. As a thriving democracy, Latvia has consistently pursued liberal economic policies and welcomes investments that foster principles and benefits associated with free markets.
Indeed, World Bank’s report Doing Business 2016 ranks Latvia as 22nd out of 189 countries for ease of doing business, measuring quantitative indicators of regulations and the protection of property rights.
Streamlined bureaucracy: The Latvian government and local authorities have worked diligently to streamline procedures for doing business in Latvia. For example, procedures for incorporating a company can be completed in a single day. The government has developed and implemented the POLARIS Process, a national strategy enabling communication, cooperation and execution of tasks among stakeholders—in industry, government and academics—involved in making investments successful.
Collaboration with investors: Indeed, Latvia’s government understands that active dialogue between elected officials and international investors is a vital and continuous process. Through the POLARIS Process, investment projects of particular importance to Latvia can be raised for administration as necessary by the Coordination Council for Large and Strategically Important Investment, led by the Prime Minister. The Council provides leadership, helping to solve significant issues if any arise for individual investors. LIAA acts as the Secretariat of the Council. Key investment issues are also regularly raised with the government through the Foreign Investors’ Council in Latvia, various chambers of commerce and, less formally, through access to individual officials and decision makers.
Significant EU Structural Funds available: As a member of the EU, Latvia operates under common, pan-European legislation. To further stimulate investment, the Latvian government is channeling EU Structural Funds to implement a number of state-support programs to foster business development.