ESIS Extension / Latvia / IS Promotional Activities / Update Memo 5

In 1999 the Cabinet of Ministers of Latvia adopted a National Program for the development of the information society, "Informatics". It defines Latvia’s interpretation of the concept of the Information Society – a way of life and work for the whole society, as well as for each individual separately. The Information Society is a process and a direction of development, in which a community of highly educated individuals is established and developed, with a focus on education, knowledge and know-how. There will be a shift in the national economy, which will be based on knowledge-intensive products and services with high added value and on effective processes of innovation. Information and knowledge will be made available to every member of society, and everyone will be able to use them for work, education and social life. It is the state’s obligation to provide these issues to the society.

Emphasis in this process, however, must be placed not only on the visible part of the iceberg – the technological aspects of the issue and the spread of modern technologies – but on the economic and social benefits and problems that occur when the content of information is used. This kind of developmental strategy must promote an increase the standard of living, and the application of knowledge must ensure maximum welfare for each member of the society. There must be no stratification between information-rich and information-poor groups in society.

When the Cabinet of Ministers adopted the National Program "Informatics", Latvia took a long step toward defining its approach to the development of the state. Quite naturally, we must ask whether this means that the state has now done everything that is necessary in developing and promoting the Information Society. Will the implementation of the Programme "Informatics", in other words, ensure the full emergence of the Information Society?

Clearly not, the programme is simply a first step in this process. As a result of the work that is planned under the auspices of the programme it is absolutely necessary that the establishment of an information infrastructure will come into reality. Examples of ingredients in this infrastructure is regulatory, technological, informative and knowledge foundations of the Information Society. The future society of Latvia will rely on these foundations.

There are several economic models presented in the world, each based on a different structure of dominant sectors in the national economy. Latvia’s economy is currently based on wood processing, light and food industry, and the focus in the economy presently is not such as to ensure overall welfare in the state. Latvia has few natural resources, and because of the small domestic market, there is no hope at all of developing many mutually linked technological sectors. The only possible route for economic development, therefore, is to emphasise the intensive use of knowledge and high technologies. The Information Society, in other words, is the only realistic path of development for Latvia. Traditional values in Latvia’s society allow us to forecast that Latvia’s sustainable development may well be based on the basic principles of development in the Information Society of Europe – freedom, equality, fraternity, unity and sustainability.

The wide range of implementation mechanisms can basically fit into two models – one that is neo-liberal and fully market-oriented, and the second, which is managed and provides for a greater or less regulatory function for the state. It is too early to definitive tell which of these models is the best, given Latvia’s present situation. When markets are developed at large and when societies have a high level of purchasing power, the market model provides for a flexible economy. The managed model seems more appropriate for Latvia at this time as well as for the implementation of the defined Information Society model. That is because it addresses social problems and the economic and social cohesion of society. The neo-liberal model, by contrast, cannot guarantee achievements given Latvia’s current situation, and there may not be time for a second attempt. Regulatory activities by the state ensure greater stability, balanced and directed development and, by extension, a greater likelihood of accomplishments.

The National Information Society Council was established to co-ordinate and promote all developmental processes on the state scale.

Please note that this report has been prepared under the sole responsibility of the ESIS II contractors.
It does not necessarily reflect the views of the Commission, nor does the Commission accept responsibility for the accuracy or completeness of information contained herein.
The ESIS Team of contractors welcomes any additional information or corrections.