Case | HBS Case Collection | February 2007 (Revised November 2007)

Latvia: Economic Strategy after EU Accession

by Michael E. Porter and Christian H.M. Ketels

Abstract

Describes the economic development of Latvia, a small eastern European country on the shores of the Baltic Sea, from regaining independence in 1991 to European Union (EU) accession in 2004 and is set on May 1st, 2004, the day Latvia became an EU member. Latvia had achieved strong growth since regaining independence from the Soviet Union in 1990. Describes Latvia's economic development over this period, discussing the economic policy efforts that have taken place and includes general information on the country, its history and politics, and the business environment that companies faced in 2004. A special focus is the influence that the EU accession process has on the Latvian economy and on economic policy choices in the country. Challenges students to discuss how the environment changes as EU membership is achieved, and which new priorities the country might need to define for its economic policy.

Keywords: Developing Countries and Economies; Economic Growth; Policy; Business and Government Relations; European Union; Latvia;

Citation:

Porter, Michael E., and Christian H.M. Ketels. "Latvia: Economic Strategy after EU Accession." Harvard Business School Case 707-515, February 2007. (Revised November 2007.)