Latvia has the advantage of being a small country that can be easily disected so that targetted segments of the economy can be stimulated. Larger economies generally impliment broad sweeping policies.
1. Latvia can pass legislation to restrict banks from applying too high interest rates and fees on financially stressed families seeking to restructure their loan.
Loans can then be refinanced in to Latvian Lats if people believe the Lat will depreciate.
2. The Lat should be depreciated only after management issues like in 1 are taken care of. The recent sales tax increase for Hostels and Hotels from 5 to 21% suggests this is the intention of goverment.
3. Salary tax and Social tax should be decreased by at least 5% during this downturn and then when the economy has recovered these taxes can be revesed 1% a year so that an additional 5% is placed on top of today's rate and then slowly brought back to todays rate.
4. Provide incentives to Councils to modernise city heating from Gas or oil to wood Pellets or wood chips so as to decrease the amount of capital departing Latvia.
5. Provide incentives to households to improve energy efficiency so that they spend to decrease the drain on their cashflow and concurrently stimulate retail demand in the economy.
6. Seek the donation to Latvia of equipment made redundant by city councils and hospitals in Scandinavia and Old Europe.
15 December, 2008
29 November, 2008
Global Financial Crisis - Solutions
The UK, EU and the US have received their ideas on how to correct the global financial crisis from Australia. It was the Australian government that first allocated money for banks to give them funds to issue loans. Then Gordon Brown in the UK did the same claiming to own the maveric idea which then led on to the EU to follow.
What Gordon Brown and other countries now fail to do is to complete the package so as to provide a solution and not just a bandaid.
Australia had moved on to give a Christmas bonus to all Pensioners of $10 billion that was announced well in advance of issue so that the money would be wisely spent by pensioners.
Then the Australian Government met with 100 local councils to hear their innovative ideas to stimulate growth and spent $100 million supporting them.
For families with children they get $1000 per child as a one off payment o boost support.
Now on Nov 29th the Australian Government has announced a $15 Billion spend that will create 133,000 jobs. The Prime minister Kevin Rudd said “It will drive a reform agenda in health, education, as well as housing and businesses deregulation.”
These actions are yet another example of good leadership and how a small country can be an example to other countries worldwide. Latvia being a smaller country than Australia has a bigger opportunity to be an example for others with good leadership.
All sectors of the economy have to be targetted with sustained hits. I am sure there are more stimulating ideas soon to be deployed by the Austalian Government.
What Gordon Brown and other countries now fail to do is to complete the package so as to provide a solution and not just a bandaid.
Australia had moved on to give a Christmas bonus to all Pensioners of $10 billion that was announced well in advance of issue so that the money would be wisely spent by pensioners.
Then the Australian Government met with 100 local councils to hear their innovative ideas to stimulate growth and spent $100 million supporting them.
For families with children they get $1000 per child as a one off payment o boost support.
Now on Nov 29th the Australian Government has announced a $15 Billion spend that will create 133,000 jobs. The Prime minister Kevin Rudd said “It will drive a reform agenda in health, education, as well as housing and businesses deregulation.”
These actions are yet another example of good leadership and how a small country can be an example to other countries worldwide. Latvia being a smaller country than Australia has a bigger opportunity to be an example for others with good leadership.
All sectors of the economy have to be targetted with sustained hits. I am sure there are more stimulating ideas soon to be deployed by the Austalian Government.
28 November, 2008
48 hours for a Patriot how much for the occupant of a leadership position?
The 48 hours detention of some that have an opinion about the strength of the economy and the Lat is an incredible injustice. We all know that to have a strong economy the country has to have strong exports as this supports the demand for the Lat required to buy these manufactured goods.
There are many clear paths towards improving exports and the most obvious are not being used for Latvia. I wrote to the Latvian President some months ago to initiate the obvious that requires the involvement of the Latvian President as it is a method used by Presidents of other small countries assisted by Prof Michael Porter. The President palmed me off to the Ministry of Economy which in turn did not reply regardless that the Latvian President instructed them to. The opportunity lost from Latvia because of the Ministry of Economy's inaction is that one of Australia's largest international business universities along with Professor Michael E Porter of Harvard University in the USA will not be coming to Latvia. A big loss for Latvia so I wrote a second time to the Latvian President and was informed to chase the Ministry of Economy myself.
My objective was twisted by the Presidents Office so they could avoid having to do something.
Along with the loss above went the involvement of medical teachers and medical processes that would improve the health system in Latvia!
6 or so years ago I was aware that the Foreign Investor Council in Latvia did not have a member that was manufacturing in Latvia to export. So I applied to Direct FICIL to attract to Latvia such an investor. But the excuse I was given was the old 'need to speak Russian and Latvian story.' 6 years later they only have a foreign manufacture member that sells to the local economy.
I soon after started Directing the Business Development Lab at the Stockholm School of Economics and during the three years I worked there it was very clear that the Latvian government did not want to invest any money on business development. Regardless that it can be proven that every $1 invested by the government would return over $10 taxable dollars for the Latvian economy.
So if someone can be locked up for saying that they think the Latvian Lat will depreciate then how long should the people be locked up that have the responsibility to do something to strengthen the lat but do nothing? The do nothing policy surely will do more to depreciate the Latvian Lat than the opinions of a few common folk.
There are many clear paths towards improving exports and the most obvious are not being used for Latvia. I wrote to the Latvian President some months ago to initiate the obvious that requires the involvement of the Latvian President as it is a method used by Presidents of other small countries assisted by Prof Michael Porter. The President palmed me off to the Ministry of Economy which in turn did not reply regardless that the Latvian President instructed them to. The opportunity lost from Latvia because of the Ministry of Economy's inaction is that one of Australia's largest international business universities along with Professor Michael E Porter of Harvard University in the USA will not be coming to Latvia. A big loss for Latvia so I wrote a second time to the Latvian President and was informed to chase the Ministry of Economy myself.
My objective was twisted by the Presidents Office so they could avoid having to do something.
Along with the loss above went the involvement of medical teachers and medical processes that would improve the health system in Latvia!
6 or so years ago I was aware that the Foreign Investor Council in Latvia did not have a member that was manufacturing in Latvia to export. So I applied to Direct FICIL to attract to Latvia such an investor. But the excuse I was given was the old 'need to speak Russian and Latvian story.' 6 years later they only have a foreign manufacture member that sells to the local economy.
I soon after started Directing the Business Development Lab at the Stockholm School of Economics and during the three years I worked there it was very clear that the Latvian government did not want to invest any money on business development. Regardless that it can be proven that every $1 invested by the government would return over $10 taxable dollars for the Latvian economy.
So if someone can be locked up for saying that they think the Latvian Lat will depreciate then how long should the people be locked up that have the responsibility to do something to strengthen the lat but do nothing? The do nothing policy surely will do more to depreciate the Latvian Lat than the opinions of a few common folk.
11 November, 2008
Business Opportunities in a Recession
If you do not think you have a future then there is no need to plan for it. Many people that have not been challenged by life may find that not believing one has a future is an odd way of thinking. But what's more unusual is the fact that the majority that do believe they have a future do not plan for it.
Now that there is an economic downturn there is a noted increase in telephone calls coming to the Australian Chamber and to my own business from people seeking to sell something. I curiously ask them some questions to identify why I have become part of their target market and what becomes evident to me is that only now I have become a potential customer for them.
For some of the suppliers they are too late as I either have customer loyalty with existing suppliers, I am convinced the callers company can not perform, or I have already satisfied the need. A very few new callers succeed in concluding a contract as I am convinced of their quality and service level is worth the price.
During the good economic days there were suppliers like Aldaris that could not provide my business good service or quality for the price. Aldaris I kicked out of my business and because there was a good economic climate - Aldaris did not care that I rejected them. Baltkom is another company that treats its customers with disrespect. Baltkom charges customers for the days and weeks they are not connected by Baltkom. Viasat did not even have a service office for over a year.
The trend for these poor suppliers is that they concurrently use multiple ways to totally disrespect their customer. 1, they stop supplying, 2. They have penalty fees for a late payment, and 3. They report you to a credit agency. The option for these companies to improve service, price and quality to increase their customer base seems to be an effort they do not want to pursue.
So overall now there is much more opportunity in the market as people are not so willing to pay bills they do not agree with. Companies like Viasat and Baltkom have prepared the market for other companies like Star TV. Personally I have chosen SKY TV. Aldaris has already lost business to Cesu and other companies like K Rauta with a nazi styled attitude towards customers lose market share to companies like DEPO.
Customer loyalty should have been built up over the previous few years as should have been websites with not only other language options but have them fully functional. The 118 information centre that always hung up on English speaking people now has trouble signing up businesses, especially those businesses run by English speaking people.
I have websites I started over a year ago now hitting the top of the first Google page joining my websites already on the top of the first page of Google that I started 5 years ago. I gave a talk 2 years ago at a Latvian Tourism Development agency event attended by about 200 people. I said that it is near impossible for English speaking people to find information about the countryside of Latvia. I see nothing has been done to open walking tracks or to improve accessibility in English.
So if you do not think about your future then you will follow with your actions of doing very little with your life and less about your business. If you do think and act then there is a lot of opportunity in the market. Now is the time or improve or start new businesses and out smart your competition. The weak businesses are much more easy to identify when they are suffering so now is the time to do your best to do more and not less to win over their customers to your business.
If you are an employee then all this applies to you. If you want a good secure job then you have to be professional about your work. Because if you are lazy and do not think then you will only get jobs with companies that are losers like you. Having no respect for yourself and others attracts others to treat you the same.
Now that there is an economic downturn there is a noted increase in telephone calls coming to the Australian Chamber and to my own business from people seeking to sell something. I curiously ask them some questions to identify why I have become part of their target market and what becomes evident to me is that only now I have become a potential customer for them.
For some of the suppliers they are too late as I either have customer loyalty with existing suppliers, I am convinced the callers company can not perform, or I have already satisfied the need. A very few new callers succeed in concluding a contract as I am convinced of their quality and service level is worth the price.
During the good economic days there were suppliers like Aldaris that could not provide my business good service or quality for the price. Aldaris I kicked out of my business and because there was a good economic climate - Aldaris did not care that I rejected them. Baltkom is another company that treats its customers with disrespect. Baltkom charges customers for the days and weeks they are not connected by Baltkom. Viasat did not even have a service office for over a year.
The trend for these poor suppliers is that they concurrently use multiple ways to totally disrespect their customer. 1, they stop supplying, 2. They have penalty fees for a late payment, and 3. They report you to a credit agency. The option for these companies to improve service, price and quality to increase their customer base seems to be an effort they do not want to pursue.
So overall now there is much more opportunity in the market as people are not so willing to pay bills they do not agree with. Companies like Viasat and Baltkom have prepared the market for other companies like Star TV. Personally I have chosen SKY TV. Aldaris has already lost business to Cesu and other companies like K Rauta with a nazi styled attitude towards customers lose market share to companies like DEPO.
Customer loyalty should have been built up over the previous few years as should have been websites with not only other language options but have them fully functional. The 118 information centre that always hung up on English speaking people now has trouble signing up businesses, especially those businesses run by English speaking people.
I have websites I started over a year ago now hitting the top of the first Google page joining my websites already on the top of the first page of Google that I started 5 years ago. I gave a talk 2 years ago at a Latvian Tourism Development agency event attended by about 200 people. I said that it is near impossible for English speaking people to find information about the countryside of Latvia. I see nothing has been done to open walking tracks or to improve accessibility in English.
So if you do not think about your future then you will follow with your actions of doing very little with your life and less about your business. If you do think and act then there is a lot of opportunity in the market. Now is the time or improve or start new businesses and out smart your competition. The weak businesses are much more easy to identify when they are suffering so now is the time to do your best to do more and not less to win over their customers to your business.
If you are an employee then all this applies to you. If you want a good secure job then you have to be professional about your work. Because if you are lazy and do not think then you will only get jobs with companies that are losers like you. Having no respect for yourself and others attracts others to treat you the same.
07 October, 2008
Empirialism Vs Capitalism
The Russian Stock Market has been forced closed over 25 times by the Russian Government and capital is fleeing the economy. A high school economics student would have better proven ideas on how to run a country. Government supporters don't care about that as it is more about Nationalism than Standard of Living. But the government supporters are not those people with money and the knowledge how to make it in a competitive environment.
Without competition peoples knowledge is not tested and innovative ideas are not identified and business does not grow. The masses would choose socialism if it were not for good leadership in putting money in their hands. A true empirialist would invade other countries to distract the population rather than put money and bread in hands.
So the conclusion is that the Russian Leadership is making it up as they go but with the most extreme changes in policy that further makes them appear unstable.
Without competition peoples knowledge is not tested and innovative ideas are not identified and business does not grow. The masses would choose socialism if it were not for good leadership in putting money in their hands. A true empirialist would invade other countries to distract the population rather than put money and bread in hands.
So the conclusion is that the Russian Leadership is making it up as they go but with the most extreme changes in policy that further makes them appear unstable.
23 August, 2008
The Moral Competition, Georgia and Russia
The August 8 initiated military conflict between Georgia and Russia has turned out to be a competition of what side can gain the highest Moral Ground. Russia has a history with its neighbours of being a spoiler country that gains relevance by weakening its neighbours and this undermines trust of Russia on the world stage. So when a real opportunity for Russia arises for it to truly attain the moral high ground it has a starting position of being distrusted. In press conferences Georgia has used Russia's spoiler history to Georgia's advantage. Russian reports on how Russia is being perceived internationally attests to the affect of this spoiler history - 'The West is seeing White as Black'.
Internally for Russia there must be a lot of congratulatory back slapping. There simply has to be when the history of the Russian government is to stop and close down debates that could be identifying opportunities for improvement but are deemed Critical of Government. The Russian government has replaced internal debates with its own moral version of events by stating it was preventing genocide. Well might Russia have prevented genocide in a speedy manner but when it is not trusted by its neighbours Russia should have added a few democratic elements to get to a commonly understood starting point. That is of course assuming Russia cares what its neighbours think. Bullies are usually big and don't care what neighbours think.
By moralising debates Russian leaders are saying that the perceived wisdom is sacred and anyone questioning it is a heretic. The next and executed step in this self moralising is that if anyone is in denial of the perceived wisdom then they ought to be punished for it. The word 'Punished' is exactly what the Russian President used which seems to further confirm what psychological path the Russian authorities are on - Frank Furedi 'The Politics of Fear'.
A Kangaroo Court operates in the same way where the desired outcome is manufactured largely by removing key elements that exisit in a democratic system to get a faster pre determined outcome. Russia has Economic, Political vetoes and Military tools to manipulate neighbours and when Russian leaders are blinded by these tools there is little incentive to make the extra effort to become more diplomatic. Russia banks on the many members of the EU not being able to conclude on a tough response and attempts to drive a wedge between the EU and the US.
For Russian government leaders the right to not be challenged is given more importance than the right for pubic free speech and this enables a continuation of self moralising. The cost to Russia is that it loses Foreign Direct Investment currently stated to be 28 billion a year. But most of that is the return of Russian money that should have remained in the country in the first place. Even the Russians are not so trustful of their government and this will be seen an an increased exodus of Russian capital to foreign banks. Most importantly true FDI brings with it skills and knowledge that directly contributes to the improved standard of living for all Russians - not just the privileged. There will also be a decline of EU reliance on Russian energy. There are many other supply sources that Russias blindness of incourages bypassing process.
Without a move towards a more intelligent society Russia will continue to remain the large Ogre when compared to the objectives China and India have for their image and people.
I struggle to comprehend why it is not more obvious to Russia that having pro Russian but independent satelite countries is more beneficial for Russia than attempting to keep those countries in a headlock. Small responsive countries quickly find their own economic advantages that could deliver a multitude of benefits for Russia.
Russia seems to be truly miss calculating its opportunity on the world stage and how to get there that the stated objective to protect citizens in Georgia attempts to suggest is an objective for Russia. What about independence for North Ossetia or Cechna?
As for Georgia - Why not give independence to two regions within its borders when they were incorporated in to its borders by Stalin in the 1930's so are not traditional Georgin territory. Abkazzia and South Ossetia deserved independence as much as Georgia did and Georgia should have valued its freedom enough to give freedom to Abkazzia and South Ossetia.
The conclusion seems to be that both Russia and Georgia are using people as pawns and are not genuine in their pursuits. Georgia and Russia have a long way to go to be moral governments and neither can claim to be the moral police when both can not be trusted to represent themselves truthfully on the international stage.
Latvia should not just be overall anti Russia but should detail something like above as to why Latvia is not comfortable with the Russan military invasion of Georgian territory. If Russia follows some internationally accepted processes then countries like Latvia will not be driven to create closer ties with a balancing power. Scandinavian countries and Australia provide better role models on how moral governments operate and thus create a better world.
http://www.abc.net.au/rn/rearvision/stories/2008/2336961.htm#transcript
Internally for Russia there must be a lot of congratulatory back slapping. There simply has to be when the history of the Russian government is to stop and close down debates that could be identifying opportunities for improvement but are deemed Critical of Government. The Russian government has replaced internal debates with its own moral version of events by stating it was preventing genocide. Well might Russia have prevented genocide in a speedy manner but when it is not trusted by its neighbours Russia should have added a few democratic elements to get to a commonly understood starting point. That is of course assuming Russia cares what its neighbours think. Bullies are usually big and don't care what neighbours think.
By moralising debates Russian leaders are saying that the perceived wisdom is sacred and anyone questioning it is a heretic. The next and executed step in this self moralising is that if anyone is in denial of the perceived wisdom then they ought to be punished for it. The word 'Punished' is exactly what the Russian President used which seems to further confirm what psychological path the Russian authorities are on - Frank Furedi 'The Politics of Fear'.
A Kangaroo Court operates in the same way where the desired outcome is manufactured largely by removing key elements that exisit in a democratic system to get a faster pre determined outcome. Russia has Economic, Political vetoes and Military tools to manipulate neighbours and when Russian leaders are blinded by these tools there is little incentive to make the extra effort to become more diplomatic. Russia banks on the many members of the EU not being able to conclude on a tough response and attempts to drive a wedge between the EU and the US.
For Russian government leaders the right to not be challenged is given more importance than the right for pubic free speech and this enables a continuation of self moralising. The cost to Russia is that it loses Foreign Direct Investment currently stated to be 28 billion a year. But most of that is the return of Russian money that should have remained in the country in the first place. Even the Russians are not so trustful of their government and this will be seen an an increased exodus of Russian capital to foreign banks. Most importantly true FDI brings with it skills and knowledge that directly contributes to the improved standard of living for all Russians - not just the privileged. There will also be a decline of EU reliance on Russian energy. There are many other supply sources that Russias blindness of incourages bypassing process.
Without a move towards a more intelligent society Russia will continue to remain the large Ogre when compared to the objectives China and India have for their image and people.
I struggle to comprehend why it is not more obvious to Russia that having pro Russian but independent satelite countries is more beneficial for Russia than attempting to keep those countries in a headlock. Small responsive countries quickly find their own economic advantages that could deliver a multitude of benefits for Russia.
Russia seems to be truly miss calculating its opportunity on the world stage and how to get there that the stated objective to protect citizens in Georgia attempts to suggest is an objective for Russia. What about independence for North Ossetia or Cechna?
As for Georgia - Why not give independence to two regions within its borders when they were incorporated in to its borders by Stalin in the 1930's so are not traditional Georgin territory. Abkazzia and South Ossetia deserved independence as much as Georgia did and Georgia should have valued its freedom enough to give freedom to Abkazzia and South Ossetia.
The conclusion seems to be that both Russia and Georgia are using people as pawns and are not genuine in their pursuits. Georgia and Russia have a long way to go to be moral governments and neither can claim to be the moral police when both can not be trusted to represent themselves truthfully on the international stage.
Latvia should not just be overall anti Russia but should detail something like above as to why Latvia is not comfortable with the Russan military invasion of Georgian territory. If Russia follows some internationally accepted processes then countries like Latvia will not be driven to create closer ties with a balancing power. Scandinavian countries and Australia provide better role models on how moral governments operate and thus create a better world.
http://www.abc.net.au/rn/rearvision/stories/2008/2336961.htm#transcript
06 August, 2008
Corruption in Latvia and the referendum
So the referendum in Latvia on 2nd August for the people to be able to have the right to disolve government did not get enough votes. Only around 600,000 voted so the bill fell short by by just over 100,000 votes.
One could despair at the lack of interest by the people of Latvia. Or one could look at the half full glass of 600,000 that demonstrated that they would like a better Latvia. So here is a tip for all the people of Latvia.
As all regional government posts are political posts then make sure your local Mayor is doing the right thing for your neigbourhood. The dismissing of Kekava Dome established a legal procedure for all to follow when their Mayor is wasting resources and not making correct decisions.
Start from the bottom and work your way up.
Find this document to show you how:
XII NODAĻA DOMES (PADOMES) UN TĀS PRIEKŠSĒDĒTĀJA ATLAIŠANA
/http://www.likumi.lv/doc.php?id=57255/
(Ar grozījumiem, kas izdarīti ar 13.11.1997., 21.12.2000. un 17.02.2005. likumu, kas stājas spēkā no 18.03.2005.)
Likums Saeimā pieņemts 2008.gada 15.maijā.
Valsts prezidents V.Zatlers
Rīgā 2008.gada 28.maijā
One could despair at the lack of interest by the people of Latvia. Or one could look at the half full glass of 600,000 that demonstrated that they would like a better Latvia. So here is a tip for all the people of Latvia.
As all regional government posts are political posts then make sure your local Mayor is doing the right thing for your neigbourhood. The dismissing of Kekava Dome established a legal procedure for all to follow when their Mayor is wasting resources and not making correct decisions.
Start from the bottom and work your way up.
Find this document to show you how:
XII NODAĻA DOMES (PADOMES) UN TĀS PRIEKŠSĒDĒTĀJA ATLAIŠANA
/http://www.likumi.lv/doc.php?id=57255/
(Ar grozījumiem, kas izdarīti ar 13.11.1997., 21.12.2000. un 17.02.2005. likumu, kas stājas spēkā no 18.03.2005.)
Likums Saeimā pieņemts 2008.gada 15.maijā.
Valsts prezidents V.Zatlers
Rīgā 2008.gada 28.maijā
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