Proceedings of the 3rd European Conference on Intellectual Capital

Maria Simonova
what degree <strong>the</strong> knowledge acquired at <strong>the</strong> training courses is used in practice and whe<strong>the</strong>r it
enhances <strong>the</strong> quality <strong>of</strong> pr<strong>of</strong>essional activity. In practice one can observe <strong>the</strong> necessity to improve <strong>the</strong>
cooperation <strong>of</strong> universities with <strong>the</strong> public administration institutions, ensuring <strong>the</strong> acquisition <strong>of</strong> initial
knowledge and skills required for <strong>the</strong> pr<strong>of</strong>essional activity <strong>of</strong> public administration under <strong>the</strong> curricula
<strong>of</strong> university studies, as well to use <strong>the</strong> library resources <strong>of</strong> public administration institutions for fur<strong>the</strong>r
education, improvement <strong>of</strong> pr<strong>of</strong>essional skill and increase <strong>of</strong> efficiency <strong>of</strong> employees <strong>of</strong> public
administration.
In conditions <strong>of</strong> an economic downturn, <strong>the</strong> most topical problem is <strong>the</strong> reduction <strong>of</strong> financing in <strong>the</strong>
sphere <strong>of</strong> human capital development in public administration, because in comparison with 2005
when in total more than 10 thousand civil servants participated in training at <strong>the</strong> School <strong>of</strong> Public
Administration with <strong>the</strong> available financing 115 500 LVL from <strong>the</strong> state budget, in 2010 this financing
has been stopped completely (Law “On <strong>the</strong> State Budget for 2010”).
Section 5.3 <strong>of</strong> <strong>the</strong> Law <strong>of</strong> 2010 “On <strong>the</strong> State Budget <strong>of</strong> Year 2010” says that <strong>the</strong> training <strong>of</strong> civil
servants from <strong>the</strong> subsidy finances <strong>of</strong> <strong>the</strong> state budget must be stopped and <strong>the</strong> functions <strong>of</strong> <strong>the</strong>
School <strong>of</strong> Public Administration must be reduced. Hiring <strong>of</strong> teaching staff for training <strong>of</strong> civil servants
for budget finances and in corresponding way <strong>the</strong> expenses <strong>of</strong> teaching staff remuneration. The
planned timetable <strong>of</strong> training pursuant to <strong>the</strong> order <strong>of</strong> training by <strong>the</strong> State Chancellery for 2008 –
2010 was annulled, agreement with teaching staff, planning <strong>of</strong> study premises, study material
preparation plan were suspended. The cooperation with regional training centres was interrupted
(Law “On <strong>the</strong> State Budget for 2010”).
Since accession <strong>of</strong> Latvia to <strong>the</strong> <strong>European</strong> Union, one <strong>of</strong> <strong>the</strong> most important instruments in human
resources development are <strong>the</strong> EU structural funds, because in <strong>the</strong> planning period 2007 – 2013 <strong>the</strong>
financing available for implementation <strong>of</strong> <strong>the</strong> activity “Streng<strong>the</strong>ning <strong>of</strong> Human Resources Capacity” is
12 848 702 euro (9 030 118 LVL), Within this program not only <strong>the</strong> human resources capacity not only
<strong>of</strong> <strong>the</strong> institutions that realise public power, but also <strong>of</strong> social partners and non-governmental
organisations, thus promoting <strong>the</strong> preparation <strong>of</strong> appropriate human resources for work in public
administration institutions and perfecting <strong>the</strong> human resources management system <strong>of</strong> public
administration, as well as improving <strong>the</strong> cooperation between non-governmental organisations, social
partners and public administration institutions. Within this planning period also o<strong>the</strong>r activities
supported by <strong>the</strong> structural funds are planned.
Thus, it is necessary to enlarge <strong>the</strong> knowledge <strong>of</strong> employees on <strong>the</strong> legislation and institutional
system <strong>of</strong> <strong>the</strong> <strong>European</strong> Union. Finances <strong>of</strong> <strong>the</strong> <strong>European</strong> Union funds can be used for improvement
<strong>of</strong> competency <strong>of</strong> <strong>the</strong> public administration employees engaged in administrating <strong>the</strong> EU funds.
Moreover, a system must be timely created to ensure <strong>the</strong> development <strong>of</strong> those skills and knowledge
that will be required for a successful presidency <strong>of</strong> Latvia in <strong>the</strong> <strong>European</strong> Union in 2015.
4. Conclusions
By summarising <strong>the</strong> results <strong>of</strong> <strong>the</strong> research, one can arrive at <strong>the</strong> following conclusions and
proposals:
In <strong>the</strong> conditions <strong>of</strong> economic downturn <strong>the</strong> state’s role in forwarding <strong>of</strong> human capital
development has substantially diminished;
In parallel to this, <strong>the</strong> financial support by <strong>the</strong> structural funds <strong>of</strong> <strong>the</strong> <strong>European</strong> Union significantly
increases;
Main obstacles in <strong>the</strong> domain <strong>of</strong> human capital development are determined by <strong>the</strong> laws and
regulations adopted during last two years on reduction <strong>of</strong> financing and most recent amendments
in <strong>the</strong> Civil Law;
Taking into account <strong>the</strong> availability <strong>of</strong> finances <strong>of</strong> structural funds in Latvia for solving <strong>the</strong>
problems <strong>of</strong> public administration, attention must be paid to <strong>the</strong> factor <strong>of</strong> human resources,
pr<strong>of</strong>essionalism and competence <strong>of</strong> personnel, and requirements must be set for project
managers, in such manner increasing <strong>the</strong> capacity <strong>of</strong> organisations.
References
Basic Statements <strong>of</strong> Development <strong>of</strong> Public Administration Policy for 2008-2014, (June 3, 2008) Order No. 305 <strong>of</strong>
Cabinet <strong>of</strong> Ministers, p. 39 (in Latvian).
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