Client’s and Country Office’s View on Latvian Cities Network Project Dina Grube, Latvia Country Office Manager

Latvia – new EU Member state since May 1, 2004 GDP per capita in PPS (in relation to EU25=100) - 47.3 GNI per capita ( WB Atlas Method) – 4070 USD Average registered unemployment (EU25 = 9) - 9.8 in Riga – 4.4%, in Liepaja - 12.8% Population – 2.32 million urban – 69%, rural – 31%

CA Latvia Program Cities Population GDP % Riga 740 000 53.8 Daugavpils 113 000 4.4 Liepaja 87 000 3.8 Jelgava 66 000 2.1 Jurmala 55 000 1.6 Ventspils 44 000 4.3 Rezekne 38 000 1.3 Valmiera 28 000 1.9 50 % of Latvia 73.2 % of Latvia

CA Latvia Program Includes 8 biggest Latvian cities CA budget 458 427 USD ( total 940 849 USD – facilitates use of local staff/consultants) Focus of CDS program: LED - enterprise growth and job creation Improved governance – partnerships between local governments and civil society Capacity building within planning teams, also through networking process

CA Latvia Program Outputs Reports : Rapid Municipal Data Assessment for 8 cities ministate of Cities Report CDS for 5 cities (2 cities had from Cities of Change program, capital Riga on its own schedule) Sector strategies ( employment, marketing) Processes Stakeholder participation- citizen forums – community foundations Training of municipal employees – LED, CIP, EU funds Networking of city development teams

CA Latvia Program Outputs Publications Linkages : to NDP or SPD 1 Program 2004-2006 to SPD Program 2007-2013 – ongoing cooperation with Ministries of Regional Planning and Finance responsible for strategic planning of national development

SPD 2004 – 2006 –Chasing EU funds Promotion of rural areas and fisheries: EAGGF 93.33 million Euro, FIFG 24.33 million Euro Development of Human Resources and Employment Promotion ESF 138.70 million Euro Promotion of Enterprises and Innovation Promotion of Territorial Cohesion ( tourism, transport infrastructure, communication technologies and soft infrastructure) ERDF 369.20 million Euro

SPD 2007-2013 Chasing Growth? The National Development Plans under preparation for 2007-13 should be improved relative to existing plans In addition to rapid growth (external convergence), countries also aim for balanced regional development (internal convergence), but there may be a trade-off in the medium term. EU aid and national co-financing should be directed toward the highest long-run economic returns. This likely includes investment in human capital and key infrastructure projects, particularly in support of emerging, market driven growth poles

CA Latvia Cities Program – Enabling Cities Growth Enabling central government – to have understanding of local economic development processes and have negotiating power in discussions with EU about designing of urban components for next programming period Enabling local authorities – to have CDS promoting city competitiveness and becoming part of national development strategy Enabling civil society – to form partnerships with local authorities in order to incorporate developmental objectives of society into CDS