ECONOMIC COMMISSION FOR EUROPE (ECE) Workshop on Encouraging Local Initiatives Towards Sustainable Consumption Patterns (2-4 February 1998, Vienna, Austria) RIGA CITY - ON THE WAY TO SUSTAINABLE DEVELOPMENT Case-study prepared by Ms. Inara Marana,.Ms. Kristine Abolina, Mr. Andis Zilans, Ms. Sniedzite Sprukta, Ms. Marita Nikmane City of Riga, Latvia UNITED NATIONS Geneva, 1997 This document has been reproduced without formal editing. ECE/ENHS/NONE/1997/39 GE.97- KEY FACTS ABOUT RIGA AND LATVIA Riga, the capital of the Republic of Latvia, situated on the Baltic Sea south of the Riga Gulf. In 2001 Riga will celebrate its 800th anniversary. The independent Republic of Latvia was established first in 1918, but in 1940 it fell under the Soviet power. In 1991 Latvia regained its independence. Riga is the biggest City in the Baltic States with 815.8 thousand inhabitants. At the beginning of 1997 one third of the population of Latvia lived in Riga and this was almost half of the Latvia’s urban population. The total population of Latvia is 2.5 mln., 1.03 mln. of them living in the Riga Region. Population density – is in Riga 2,658 inhabitants per sq.km , in Latvia 36,.8. The City’s territory covers 307 sq. km. As much as 54.2% of the City’s territory is open space, 36.6% green space, 41.5%. built up areas. INTRODUCTION Riga’s municipal government plays a key role in the economic development process of the City heading towards the creation of the best possible living and working conditions for people, at the same time protecting environment and national heritage, and providing equal opportunity for individual development. Our present society is becoming increasingly a consumer society using more and more resources, so that the balance between nature and human activity is spoiled. Therefore, Riga also has to put emphasis on careful utilization of resources, protective attitude to nature and changing residents’ behavioural model of attitudes to resource consumption. The Riga Case Study evaluates the Riga City local initiatives to change people’s behaviour and attitudes to consumption based on best examples in Riga’s planning, nature protection, housing, waste management, transport, water and energy sectors, at the same time showing obstacles and problems in these areas and outlining possible ways by which the objectives of sustainable development at the local level could be achieved. The evaluation of local initiatives as the task of the Riga Case Study is not an easy one in the times of economic and social transition when suffering from lack of data, analytical studies and research on subject. Moreover, the situation of public behaviour and attitudes to consumption is not studied at all. The time we are living in, planning, developing and arranging various urban structures is to be taken into consideration when evaluating local initiatives. Therefore, evaluation of local initiatives out of the context cannot give a sufficiently accurate view of what is going on in Riga. Public behaviour model of changing attitudes to consumption is in process, and Riga is facing the need to make the necessary choices. 1. CURRENT SITUATION AND DEVELOPMENT TRENDS At present Riga is undergoing a process of metamorphosis. Every conceivable aspect of City life - the economy, the Government’s system, the society - is in the process of rapid and indeterminate change. DEMOGRAPHIC SITUATION. The population of Riga has decreased by up to 97 thousand since 1990 reaching 815.8 thousand in 1997. Migration has been the main cause of the decrease, but it is also related to the mortality rate which is much higher than that of birth throughout the period in concern. According to the demographic forecast, the population of Riga will continue decreasing, and most probably it will be around 790.000 in 2003. At the beginning of 1997 Riga had 17.1% population under the labor age, 63.1% of labor age and over 27.7% of retirement age. Demographers are predicting that the retired population could increase by the turn of the century. Riga's population's ethnic composition also has changed considerably from 70% of Latvians in 1940 to 38.6% in 1997 (the average number of Latvians in Latvia in 1997 is 52.6%). ECONOMIC SITUATION. The economic forces forming the economic basis of Riga and ensuring its development during the last 50 years have disappeared, as new forces are arising instead. Riga’s economy is in transition. The economy of Riga accounts for 52% of GDP of Latvia. The main three sectors of the national economy, also in Riga, are services, transport and industry. Both the service and transportation sectors are still growing and will still be the economic backbone of Latvia and Riga in the future. Manufacture is decreasing, but its rate of decline is slowing down. It will not have a dominant role in the future, but it is changing its features significantly. Within the last years Riga has become the largest financial center in the Baltic Region. The small business and service sectors are developing in Riga, private capital prevailing and increasing its share rapidly, and giving residents additional employment, which explains the quite moderate level of unemployment, at least what is registered officially. The official statistics shows that 3,6 % of the economically active residents were unemployed in Riga in 1996 matching half the unemployment rate of Latvia (7.2%). However, the real unemployment, which includes the hidden unemployment, is much higher in Riga. Economically active people live mostly in Riga. The number of active residents employed was 491.2 thousand in the middle of 1997. Land reform is going on for several years in Riga as one of the most difficult processes in the reorganization of land ownership towards market economy. Various enterprises are being privatized. Conflicts of interests arise in the course of privatization and creation of land market, economical considerations often prevailing environmental protection. Reconstruction of old buildings for diverse institutional and commercial needs is also promoting economical activities in the City, though this activity is low for the time being. Particular attention was paid last year to modernization and reconstruction of urban infrastructure, playing a key role in the economical development. It should be noted that educational aspirations of Latvian people are increasing. SOCIAL SITUATION. The social problems have become more pronounced. Social structures are changing currently, as residents are stratified by income levels. The sudden inflation after regaining independence shocked the public. The increasing wages still do not keep up with the inflation, thus decreasing the buying power of population leading to the feeling of insecurity among citizens. As much as 27.7% of the Riga’s population are pensioners whose pensions are indexed at a rate less than the inflation rate, making even moderate inflation a most painful experience. This is naturally leading to the fact that environmental concerns come after existential problems of the public: sustainance, communal payments and rent. URBAN DEVELOPMENT TRENDS. Residents of Riga had up to now good opportunities for employment, education, cultural and social requirements. Therefore, the residents of the former Soviet Union often choose the capital of Latvia for their residence. Riga was also chosen as an industrial growth center by the central planning powers in Moscow. The population of Riga has grown disproportionately for these reasons, compared to other Latvian cities. One third of Latvia’s population lived in Riga at the beginning of 1997, and this was almost half of all Latvian urban population. The recent commercial activities in Riga are promoting occupation of new areas within the City and in the suburbs. New development is currently being extended beyond the City's boarders. Intense use of Riga surroundings for housing construction, business and mixed industry takes place developing those areas along highways and railroad lines. 2. NEW PLANNING PRACTICE AND INITIATIVES PRESENT SITUATION. After restoration of Latvia's independence different legislation initiatives on environment and development planning have taken place in Latvia. The Territorial Planning Regulations were adopted in 1994 designed to be a management tool for governance after independence of Latvia. Legislative system keeps on changing: new Territorial Planning Regulations, Development Law, and Guidelines for Preparing Development Strategy are currently under preparation. The National Environmental Protection Policy Plan containing policy goals and principles, description and analyses of priority environmental problems, as well as survey of political instruments and recommendations for their application was accepted by the Cabinet of Ministers of Latvia in 1995. In 1997 the National Environmental Action Program was accepted. The Ministry of Environmental Protection and Regional Development in cooperation with the Sweden Agency of Environmental Protection is working at the Project on “Harmonization of Environmental Legislation in Latvia”. During the last few years various plans have been worked out in Riga accordingly adopted laws. The Riga Development Strategy was prepared at the end of 1995; the Riga City Council adopted the Official Plan of Riga. The Riga Region Development Strategy was initiated by the Riga City Development Department at the end of 1996. Different initiatives have also been promoted in different sectors of the Riga City. All these initiatives are very important for targeted development, environmental protection, nature conservation, national heritage management, and dealing with common problems by different stakeholders in the City. Each plan being developed by law in Latvia must undergo the State Ecological Expertise to evaluate the policy and adopted solutions pursued by the plan in accordance to the requirements of environmental protection. RIGA CITY OFFICIAL PLAN - POLICY FOR THE FURTHER DEVELOPMENT OF THE CITY. In the opinion of many experts the most important achievement of planning in the last years was the adoption of the Riga Official Plan.