LATVIA Human Development Report Human Capital
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2006/2007 LATVIA Human Development Report Human Capital UDK 31: 314 La 800 There is no copyright attached to the text of this publication, which may be reproduced in whole or in part without the prior permission of University of Latvia. However, the source should be acknowledged. ISBN 978–9984–825–27–4 2 LATVIA HUMAN DEVELOPMENT REPORT 2006/2007 Foreword «My fortune is my people» wrote one of Latvia’s most reports show that we truly are a part of Europe and that prominent authors, Rūdolfs Blaumanis, in 1902 in we share one of its current problems – the ageing of the St. Petersburg. These wise words are basically the population. In a way, this is logical: young people put leitmotiv of this human development report. Today’s education, career and economic stability in fi rst place global processes and growing competition have made and, only when these have been achieved, consider the responsible and well-considered human capital policies possibility of family and children. This is why we must a necessity for every country. If Latvia wishes to see itself recognize the value and importance for growth of the as a strong, thriving country with an active role in the country of every single individual. Today, this calls for European economy, it too must take a good look in the a competitive education system, one in which every mirror and recognize its plusses and minuses. new stage supplements the previous one, in which the fi nal product is a young person able to compete in our Our big plus, our success story, is clearly our people – modern-day world – a critical thinker, able to judge for their education, their work experience in times of himself or herself, and make independent decisions. To rapidly changing social and economic conditions, their create such a system, it is important to fi nd a common knowledge and – most important – their readiness denominator for the interests of the public and the to believe in the goals that have been set and in the private sector. achievement of these goals. Only then will we be able to speak of Latvia as a country In this, the ninth consecutive Report, Latvia’s leading which has been built on common values and which is social scientists and researchers have examined diff erent ready to rally its forces and achieve great things. The aspects of Latvia’s human resources, analyzed the basic value that we all share is democracy, as anchored potential of our country’s economic activity, identifi ed in the Constitution, and human respect for each other. the problem areas and judged future prospects. This But where development of the nation is concerned, an provides a good baseline for future development plans. invaluable asset is the educated individual. Opportunities for self-realization and a strong personal belief in success But the Report alone is not enough. Now, it is up to the are an invaluable investment in the future of our country. government to eliminate the inequalities in regional They will help us to believe that we can leave our children development that may well become a major obstacle to a better Latvia than the one in which we live today. And, Latvia’s overall development, to give every person living fi nally, let us keep in mind that Latvia is every single in this country a clear answer to the question: where one of us. We all share a responsibility – for our Latvia’s will he or she receive the social services guaranteed by present and our Latvia’s future. Every single one of us, in the state – where will the closest school be located, the our own place and in our own way. closest police precinct, the closest fi re-station or cultural centre? We all need answers to these questions. How else will it be possible to curb the outfl ow of economic migrants motivated by social uncertainty and convince the younger generation that even the boldest ventures are possible in the most remote corners of the country? An equally serious problem and one that should not Valdis Zatlers be disregarded is the demographic situation. These President of the Republic of Latvia HUMAN CAPITAL 3 Foreword The report on Human Capital is the ninth human form of cooperation is public-private partnership (PPP). development report in Latvia that examines the So far, PPP has been underestimated in Latvia, but as the social, economic and political aspects of the country’s Report shows, it is a successful and extremely promising development. It is the second Report prepared by cooperation model, one that should be considered more the Advanced Social and Political Research Institute by universities and colleges in the future. (ASPRI) of the University of Latvia. However, the circle of authors is much wider, including researchers from I believe that the assessment of Latvia’s human capital, the Liepāja Academy of Pedagogy, Latvian University of the analysis of concrete examples and the public policy Agriculture, Daugavpils University, Vidzeme University recommendations put forward in the Latvia Human College and other institutions. This has made it possible Development Report 2006/2007: Human Capital will not to draw on a rich fund of knowledge on development only be a positive contribution from Latvia’s researchers and implementation of human capital in Latvia and the to our nation’s policymakers, local governments and factors aff ecting this capital. This is a source of pride. NGOs; it will also continue the tradition of previous Human Development Reports to serve as a source of I would like to stress one of the Report’s most im- ideas and information for students, teachers, scholars portant insights: to increase Latvia’s regional and and anyone who is concerned about Latvia’s future. global competitiveness, the country’s human capital must be made more competitive. The most important requirements for this are a good education that is available to all, use of innovative approaches in production, and the use of high technologies. This is why universities and colleges, especially those in Latvia’s regions, are important centres of development that promote the generation of new know-how and innovative business ideas in the regions. The development of human capital must be a joint eff ort – Mārcis Auziņš cooperation aff ords greater opportunities. An important Rector of the University of Latvia 4 LATVIA HUMAN DEVELOPMENT REPORT 2006/2007 Latvia Human Development Report 2006/2007 Team Editor-in-Chief: Aija Zobena Project Director: Tālis Tisenkopfs Statistical Advisor: Anita Švarckopfa Research Assistant: Ilze Lāce Project Coordinator: Ieva Zlemeta Authors of Chapter 1 Aivars Tabuns (Chapter Coordinator) Margarita Dunska Pārsla Eglīte Juris Krūmiņš Artūrs Medveckis Inta Mieriņa Daina Paula Iveta Pavlina Aivita Putniņa Iveta Reinholde Gunda Reire Authors of Chapter 2 Līga Rasnača (Chapter Coordinator) Vija Daukšte Zaiga Krišjāne Inga Ulnicāne-Ozoliņa Authors of Chapter 3 Baiba Bela-Krūmiņa (Chapter Coordinator) Ivars Ijabs Ilze Lāce Ieva Strode Authors of Close-ups Vera Boroņenko, Jānis Daugavietis, Ilze Lāce, Zane Linde, Daina Pakalna, Līga Paula, Līga Rasnača, Evija Sprodzēna, Laura Sūna, Inese Šūpule Survey on Human Capital 2007 Methodology Anita Kalniņa Latvian Language Editor: Aldis Lauzis English Language Editor: Nils Muižnieks Translators: Ieva Harms and Lolita Kļaviņa Cover, Layout Design: Ieva Tiltiņa Our thanks to Normunds Zitmanis for the possibility to use his photo for the cover design. Our thanks to Aleksandra Bačurina, Sandra Ķempele, Aļona Podimova from the Rīga Children’s Creative Imagination School «Palete» and Luka Jerošonoks from the Salaspils Art and Music School for the possibilities to use the drawings in the chapter title layout. Our thanks to Gita Blaua, Inta Brikše, Lelde Laura, Linda Lotiņa, Žaneta Ozoliņa, Māra Sīmane, Anna Šmite, Ilze Trapenciere, Vladimirs Meņšikovs, Māra Mickeviča, Nils Muižnieks, Sandris Mūriņš, Māra Sotaka, Vladislavs Volkovs for references and assistance in the course of preparing the Report. Survey and data processing was done by marketing and public opinion research centre SKDS. Our thanks for the organi- zation to Ieva Strode, Zanda Rutkovska and Laura Ostele. HUMAN CAPITAL 5 Contents Basic Facts about Latvia, 2006 9 Introduction 10 My People 1 Chapter Introduction 17 What is Happening in the World? Global development trends 17 Among Other Nations Latvian Human Capital in a Global Context 19 Employees Who Know How to Manage Their Time The Work Environment 19 What’s Happening in My Homeland? Human Resources 22 No Brothers, No Sisters Demographic Processes 22 Fathers and Mothers Family Policy 25 A Long Life and Good Health Health and Life Expectancy of the Population 27 Out in the Big World Migration 29 Prompted by Wisdom Education Policy 32 School Costs Money Funding for Education 32 Some Good Advice The Quality of Education 37 Teach Me How Education and the Labour Market 38 All Together: Public-Private Partnerships 39 Conclusion 42 Latvia outside of Rīga 2 Chapter Introduction 45 Urban and Rural Alliances for Sustainable Development 45 Spatial Planning for the Accessibility and Quality of Services 46 In Search of the Good Life Intraregional mobility 49 A Trade Learned is an Opportunity Gained Work and employment 51 Home is where the Job is Attraction to one’s place of residence 55 Entrepreneurship 56 Small Towns The Living Environment in Small Towns 57 Emergence of Regional Innovation Systems in Latvia 59 6 LATVIA HUMAN DEVELOPMENT REPORT 2006/2007 CONTENTS Regional Universities, Local Governments and the Private Sector 62 Challenges for the Development of Regional