Benchmark Study 1

IPP 1st BENCHMARK REPORT
also the impact of agriculture on water quality is observed;
o use of recycled raw materials creates a problem under the current economic crisis considering the
significant fall in prices and demand, also the achievement of waste recycling objectives is difficult;
o planning documents of other sectors insufficiently describe various environmental factors –
environmental quality and noise for planning of traffic flows, geological risks, flood risks, measures
for prevention of industrial accident risks;
o lack of public awareness about the connection between the types and methods of economic
activity and the long-term viability of natural assets;
o lack of long-term, regular scientific studies on the possible impact of climate change on the
environment of Latvia, risks posed by climate change and the impact of measures for mitigating
climate change on the national economy, as well as economic and social adaptation measures and
their implementation programme have not been developed;
o insufficient funding for enforcement of the legislative requirements.
8. Key development challenges for Latvia
Demographical changes and urbanization
In Latvia, similarly as in Europe, depopulation and ageing has a quite strong regional dimension. Present
tasks of development provide for even and balanced development of territories, however, it may be
hindered in the future. If national policy is not directed towards the elimination of these tendencies, the
number of inhabitants will decrease in all regions of Latvia. It should be taken into account that the ageing
dynamics of inhabitants of Latvia is more rapid than on average in the EU states, and already reduction
in the number of children in several age groups is evident.
According to the estimates of the World Bank, by 2025 the number of pupils in basic schools will decrease
by approximately 25%, in secondary schools – by 20%, however, the largest decrease is expected
in higher education where the anticipated reduction in the number of students is 40%.
In the same time the degree of urbanization is high – approximately 68% of all inhabitants of Latvia are
living in cities, though cities cover only 11% of the whole territory of the country. Although settlement
structure is formed by rather evenly dispersed network of small and medium-size cities and rural populated
areas, capital-oriented monocentric settlement and traffic infrastructure, as well as concentration
of social and economic activities in the functional zone of Riga is characteristic to Latvia, and this tendency
is becoming stronger.
The main challenge is to implement such policy, which strengthens the capacity of regions, using their
advantages and resources for growth as efficiently as possible. Contrary to the present monocentric
settlement structure, the polycentric settlement structure should be developed, which would be formed
by mutually subordinated and related networks of development centres of different levels, concurrently
not weakening the positions of Riga as metropolis.
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