1 - 20 of 22 result(s)

This OECD Economic Survey of Latvia examines recent economic developments, policies and prospects. Special chapters cover improving public sector efficiency and raising productivity.

OECD (2013), Product Market Regulation Database

Improving public sector efficiency is a priority in a catching-up and ageing economy such as Latvia, where spending needs are large. Ensuring that spending allocated to core services (e.g. education, healthcare) is adequate to achieve convergence of policy outcomes to OECD upper standards is challenging. Efficiency gains in the tax system could bring additional revenues. The tax base should be expanded by reducing informality, strengthening tax administration and increasing property and environmentally related taxes, which are low by international standards. To reduce unemployment and income inequality, the tax-benefit system should also be revised as it is now relatively regressive and the tax wedge on low-income earners is high. Enhancing analytical, monitoring and assessment capacities should help to rein in wasteful expenditure and improve the prioritisation of spending. The reform of human resource management, public procurement, and state-local relations is also needed to deliver higher-quality and more cost-efficient public services.

On 29 May 2013, the OECD Council decided to open discussions with Latvia on accession to the Organisation and, on 15 October 2013, an Accession Roadmap, setting out the terms, conditions and process for accession was adopted [C(2013)122/FINAL].In the Roadmap, the OECD Council requested a number of OECD Committees to provide it with a formal opinion. The Economic and Development Review Committee was requested to provide a formal opinion evaluating Latvia’s policies and practices as compared to OECD best policies and practices. In light of the formal opinions received from OECD Committees and other relevant information, the OECD Council will decide whether to invite Latvia to become a member of the Organisation.The present Economic Survey was prepared for the purposes of the accession review of Latvia. The draft report was discussed by the Economic and Development Review Committee on 18 December 2014, revised in the light of the discussions and finalised on 22 January 2015. The draft report was prepared for the Committee by Caroline Klein and Zuzana Smidova under the supervision of Andreas Wörgötter. It also benefitted from consultancy work by Robert Price. Research assistance was provided by Corinne Chanteloup. Heloise Wickramanayake formatted and produced the layout of the document.This is the first OECD Economic Survey of Latvia. It is published on the responsibility of the Secretary-General of the OECD.