Executive summary
In July 2016, Latvia became OECD’s 35th member country. It is one of the fastest-growing economies in Europe and offers an attractive business environment. While citizen satisfaction with public services in Latvia currently lies below the OECD average, trust in government and justice services has increased at a pace above the OECD average. This provides the momentum for taking stock and reflecting on opportunities to further strengthen access to justice so as to foster inclusive growth and a positive business climate.
A sound system of commercial legal and regulatory frameworks and well-functioning public services are important contributors to economic growth and social welfare. Commercial legislation and justice institutions support contracts and their enforcement, reduce transaction costs, and facilitate investment and trade. Effective access to justice for business also fosters good governance, legal certainty and predictability. This, in turn, enhances the development of entrepreneurship, an internationally attractive investment climate and private sector growth.
Like many OECD countries, Latvia is developing user-centred approaches to delivering legal and justice services to economic actors. The interests of different types of businesses serve as the guiding principle for evaluating legal and regulatory frameworks as well as related procedures. This report considers the perspective of a range of business types and sizes, individuals and specific groups.
The general institutional and legal framework plays a decisive role in creating a supportive business environment. Within this broader context, the following five issues currently stand out for Latvia: 1) a modern approach to commercial law; 2) formal requirements for doing business in the age of technology; 3) pace of reform and access to law; 4) strategies for reducing administrative burdens; 5) governance implications for business-friendly institutions.
These five issues are explored in more detail in the Assessment and recommendations.