SHRINKING GOVERNANCE – ECONOMICAL ASPECTS IN LATVIA CASE

• Puzulis, A.
• Miglavs, A.
• Lakovskis, P.
• Usca, M.

Abstract:

Shrinking is a series of causes that have different effects on the rural areas. These effects are often direct and indirect, immediate or may express in a long-term dimension. The causes of shrinking are diverse: e.g. economic recession, increasing urbanization, changes in environmental conditions, etc. The most commonly shrinkage characteristic is a permanent decline in population. Latvia like several other European countries is losing population. As a monocentric country Latvia has some additional challenge - depopulation in the rural areas. The policy response to population decline is reflected to local governance and municipal services, where administrative territorial reform and the amalgamation of municipalities are one of the key. The aim of the study is to analyze the effects of shrinkage management in Latvia on the basis of existing administrative structure. The focus of the research chosen by the authors best describes the policy response to this complex problem. The article is based on the analysis of state policy, local government documents, socio-economic indicators, population projection for 2030, analysis of local government budget expenditure, analysis of spatial data at the level of administrative territories. We conclude that the response of government to development trends is not always adequate to deal with the effects of shrinking. The change of existing approach of the local municipality equalization fund, the budgeting principles of local governments is needed, due to lack of it sustainability. New management governance that takes into account shrinking causes and processes, is needed, based on more complex view on financial, structural and spatial contexts.

SGEM Research areas:

• SOCIAL SCIENCES: Section Economics and Finance

Year:

2019

Type of Publication:

In Proceedings

Keywords:

shrinkage; rural development; administrative reform.

Volume:

6

SGEM Book title:

6th SWS International Scientific Conference on Social Sciences ISCSS 2019

Book number:

2

SGEM Series:

SWS International Scientific Conference on Social Sciences - ISCSS

Pages:

265-272

SGEM supporters:

Bulgarian Acad Sci; Acad Sci Czech Republ; Latvian Acad Sci; Polish Acad Sci; Russian Acad Sci; Serbian Acad Sci & Arts; Slovak Acad Sci; Natl Acad Sci Ukraine; Natl Acad Sci Armenia; Sci Council Japan; World Acad Sci; European Acad Sci, Arts & Letters; Ac

Period:

26 August – 1 September, 2019

ISBN:

978-619-7408-92-8

ISSN:

2682-9959

Conference:

6th SWS International Scientific Conference on Social Sciences ISCSS 2019, 26 August – 1 September, 2019

DOI:

10.5593/SWS.ISCSS.2019.2/S04.033