Baltic experience in transition, Latvia

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Baltic experience in transition, Latvias case
studyArmands Eberhards, CFCA director 30.12.
Belgrade
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Latvias experience of transition management

• From socialism to EU membership -15 yr
• Shock therapy vs gradualism debate
• Reforms and better use of national funding
• Experience of PF reforms to better exploit EU
  funds
• EU integration, adoption of Acquis
• Lessons learnt
• References

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Reforms and better use of national funding

• Public finance effective management of public
  funds policies and implementation expenditure,
  revenues public procurement planning no
  different treatment of internal and external
  funds
• Institutional building- capacity building of MoF,
  ST, SRS (incl. Customs), PPB, CFCU
• Supreme Audit Office- external audits, adoption
  of International standards, best practices
• Effective Internal Audit services risk
  management based approach

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Experience to reform PF to better exploit EU
funds

• MoF, ST - no new structures for similar
  functions- complimentarity, additionality
  absorption capacity co-financing ownership of
  reform process
• CFCA- financial and administrative management-
  DIS, EDIS SFM innovations in practice Phare,
  ISPA, ERDF etc
• Line ministries policy responsibility, technical
  competence PMU- technical management
• Incentives to emulate and negative externalities
• Reforms first (business plan) then investments
• Specialized agencies LDA- FDI, export promotion,
  state aid management (ERDF,ESF) NVA-employment
  promotion (ESF)

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EU integration, adoption of Acquis

• National program for the Adoption of Acquis
  political priority
• European Integration Bureau -coordination,
  supervision, harmonization of legislation
• Translation of Acquis- Translation and
  Terminology Centre
• Intra ministerial cooperation and coordination in
  negotiation process
• Prioritization of budget expenditures and
  technical assistance- institution building (HRD
  and investments)

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Lessons learnt

• No ready- made solutions, local solutions for
  domestic problems gradual reforms
• Objectives of transition to benefit
  constituencies- transition as domestic political
  process
• Close collaboration with international partners-
  active dialogue
• Institution building - constant process of
  planned improvements to provide better services

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References

• State Audit Office
• http//www.lrvk.gov.lv/
• Ministry of Finance
• http//www.fm.gov.lv/
• Central Finance and Contracting Agency
• http//www.cfla.gov.lv/
• State Treasury
• http//www.kase.gov.lv/
• Latvian Development Agency
• http//www.liaa.gov.lv/eng/
• Latvian Employment Agency
• http//www.nvd.gov.lv/

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• Thank you!
• Armands Eberhards, MSc, MBA
• CFCA Director
• Smilsu Str.1, Riga, Latvia
• Armands.Eberhards_at_fm.gov.lv
• Armands.Eberhards_at_cfla.gov.lv