Unlocking the potential of intermediary cities for regional development in Liepaja‑Saldus, Latvia

Intermediary cities can be powerful drivers of smart, inclusive, and sustainable regional development. Located outside major metropolitan areas, these small and medium-sized hubs play an “intermediary” role by structuring the flows of people, goods, capital, and knowledge across surrounding urban and rural areas. This study, conducted as part of the OECD-EU project “Unlocking the Potential of Intermediary Cities for Regional Development ”, focuses on Liepaja and Saldus, both located in the Kurzeme region in the west of Latvia. As the third largest city in the country, Liepaja serves as a regional capital. Saldus has a smaller population size but delivers essential services in the region. Applying the project’s analytical framework, this study examines the functions of Liepaja and Saldus as intermediary cities. It explores how two cities with different population sizes and positions within the urban hierarchy play complementary intermediary roles within Latvia’s national urban system, highlighting both challenges and opportunities. The study provides policy guidance to support more balanced regional development, particularly by strengthening local business environments and enhancing cultural offerings.