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Turning of the tide
 
Andrejs
Posted: 27 April 2008 08:23 AM   [ Ignore ]  
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... or a temporary blip?

Andrejs

REZEKNE/LATVIA: Sergejs Cakss swerves his 2002 Volkswagen Golf around potholes in one of the poorest parts of the European Union (EU), near the Russian border.

Where he lives in eastern Latvia, jobs are scarce and infrastructure is in ruins. Thousands of Latvians packed their bags for a better life in Ireland and Britain after the Baltic nation joined the EU in 2004.

Four years later, some - like Sergejs - have returned while interest in jobs abroad had dropped. Others are watching the economy back home as eastern Europeans weigh the region’s strong growth and rising wages against the advantages of working in the West.

Judging from the number of registered working residents from eastern Europe in Britain and Ireland, about 2.5 percent of Latvia’s 2.3 million people have moved to work there, the second highest level among the newcomers that joined the 27-nation bloc nearly four years ago.

People from Lithuania, Latvia’s Baltic neighbour, have been the quickest to leave, with 3.3 percent of the population now working in Britain and Ireland. Slovakia is third and Poland fourth. Experts say the actual number of migrant workers who left is probably higher.

Sergejs, his wife, Jana, and their 19-year-old son, Vladimirs, all have separately worked abroad, but never planned to emigrate. “These trips are just to make a little bit more money to last us for the rest of the year,” Sergejs said in his home in the Latvian village of Audrini, where a monthly wage of 300 lats (427 euros or about $668) is considered a well-paid job.

He worked at a Royal Mail post office in London for three months, making more money than in a whole year in his current job as a fuel station attendant in the nearby town of Rezekne. His wife, a kindergarten teacher, helped tend gardens in Italy for “some Russian oligarch” last summer.

Language problems abroad, homesickness and proximity to the rest of the family are main reasons why they decided to return to Audrini. Mass emigration from eastern Europe splashed in the international media, such as when Polish future prime minister Donald Tusk campaigned for Polish votes in England.

In recent months, though, the exodus has subsided. “It’s the beginning of the return,” Janis Laucis, an assistant director at the state-run placement agency in the Latvian capital, Riga, told DPA recently.

“Some do come back. Most, though, come, look around, if they see that there’s nothing here for them, they leave,” he said. In the next three to four years, some workers will return to live in Latvia permanently, he predicts.
Although no official numbers exist, anecdotal evidence suggests more Poles are returning home because of an improving domestic economy and limited career opportunities in Britain, where most Poles emigrated after labour markets opened in 2004.

Polish officials believe more citizens will come back as wages rise. Marek Okolski, a migration expert at Warsaw University, predicts that the emigration wave will stop around 2010. Once ubiquitous ads offering help in finding a job abroad have almost disappeared and anecdotal evidence suggests that eastern Europeans are calling family and friends to check on opportunities back home.

“I have been talking to my schoolmates and monitoring wages and jobs available, but so far the money is not good enough to give me the standard of living I like,” said Lenka Blaskova, a Slovak, who has worked in Ireland since 2005 as a payroll clerk for a German company.

Making a living in Ireland, she’d be able to pay off her mortgage in Slovakia in three to five years, compared to 30 years if she had stayed there. “The wages would really have to go up at least 100 percent for me to decide to return for good,” she said, adding she plans to stay in Ireland for two years to pay off her mortgage before returning to Slovakia for good.

But wages are pushing up across Eastern Europe. In Slovakia, a post-communist hub of the auto industry, the average wage rose 7.2 percent in 2007 as the economy grew by a hot 11.6 percent. Labour markets in the Baltics are tightening. In Latvia as well as Romania, one of the EU’s poorest nations, wages have shot up by about 30 percent annually.

Despite an expected slowdown this year, economic growth in the former communist countries remains faster than Western Europe’s. Eight of the 10 eastern EU members posted growth of more than six percent last year.
Meanwhile, the Irish economy is forecast to slow down as well after years of “Celtic Tiger” growth that pulled in eastern migrants.

Regardless, some are always on the lookout for greener pastures. “Now we get ads to go further,” a Latvian woman named Zane said in a recent newspaper article. “The inbox is filled with job offers from Canada, Australia.”

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Juris Kazha
Posted: 27 April 2008 01:36 PM   [ Ignore ]   [ # 1 ]  
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A false dawn.
The economy here is likely to crash and remain in some form of stagflation for several years. The other factor besides wages is the general workplace and societal culture. This is the reason Latvians in Ireland often cite for STAYING rather than returning to Latvia.
Latvia still has a mutt government, mutt management at many(though this is improving) workplaces, and the day to day culture of boorishness, reckless driving, poor service, public drunkeness, etc. Who needs it and if so, WHY do they need it?
Andrejs says elsewhere the place is where the US was in the early 1950s. Well, the US went from the 50s to the sharp and radical changes of the 1960s in just 15 -18 years. How long has Latvia been independent? Or are we talking about the late 2020s before we see anything like real change?
Ultimately the winners in the world are those who are smart, adaptable, open, innovative, etc, but above all, fast in delivering most of those attributes, especially the ones that don’t require great capital expenditures. Making a great university might mean spending $ 500 million over a number of years. But what does it cost NOT to drive like animals? Or just to deliver the f**king mail?  Or not to be total tumsoņi on any number of issues?
All these analogies to slow adjustments and long, bumpy recoveries from whatever kinds of traumas societies have suffered elsewhere and at other times don’t really apply to the 21st century global world. The speeds needed for success are going up and they were never slow to begin with. Germany went from a bomb cratered wreck justifiably blamed for dragging Europe into war and holocaust in 1945 to a reasonably prosperous and democratic society in 1965.  The Atmoda started in 1988, 20 years ago.
Ireland was also a backwater, depopulated by emigration, provincial, etc. 20 years ago. but that was enough for it to shake off the alleged legacy of centuries of foreign domination, the oppressiveness and tumsonība of the Catholic Church. But it seems to have made it to the top of the list, not taking the better part of a century and a half, as the thirteen rebel colonies did to become a global economic and military power in 1945 and for the rest of the 20th century. When did China start its rapid economic rise?
As for Latvia, if it hasn’t gotten it together by now, it probably won’t (and it may not be alone, across Eastern Europe, the specter of becoming a bardak-nation with some new shiny buildings and toys is spreading)

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Juris K

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Andrejs
Posted: 28 April 2008 01:12 PM   [ Ignore ]   [ # 2 ]  
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How long is long enough? I don’t know. But if you look at comprable situations, on the same timeline, is there someone who is doing better and did it in a shorter time? Other than Estonia everyone seems to be struggling with the transition. And even there you have issues. No one is going to blame you for bailing, but is Latvia so unique in its “failure”?
You want animal driving? Try Tel Aviv.
The mail? I used to live in the worst mail district in Chicago. If you got 50% of your mail you counted yourself lucky.
A crashing economy? Well ... the bottom hasn’t fallen out yet, but its plunging rapidly.
As to the future, I actually agree with you that things today change rapidly. I just think it can work both ways.

Andrejs

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ogresdels
Posted: 29 April 2008 07:41 PM   [ Ignore ]   [ # 3 ]  
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My impression is that Latvia is more like the US 1930’s. Struggling ,but with great opportunities if one has the guts. The govt is held hostage by the “big boys” and has not yet discovered its purpose. The big difference is danger from without.
Most of the residents are still stuck in the occupation mentality ( extreme insecurity and limited vision). But I still have confidence that as the “old"die off, the young ,who were not raised under the boot, will persevere.

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Ogresdels

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Juris Kazha
Posted: 29 April 2008 09:20 PM   [ Ignore ]   [ # 4 ]  
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The danger from without is primarily economic, energy dependence on Russia and delusions of the great Russian market. Even if these are partially true, Latvian industry does not have the capacity to execute on the scale that Russia (or for that matter, many Western markets) requires.  Productivity is low and falling.
The opportunities for the young who don’t want to struggle against corrupt public governance and bureaucracy are in Western Europe—Ireland, Great Britain, anywhere but Latvia. Enterprise and innovation are tough enough without having public authorities as an obstacle and unpredictable adversary. The pace of change is inadequate even if things are far from the early 1990s,

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Juris K

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peter B
Posted: 30 April 2008 02:29 PM   [ Ignore ]   [ # 5 ]  
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Juri~ Pitting german sucess against latvian bardak is a bit off.
Krauts had Marshal Plan and a huge US military presence,
Latvia had a marshall plan to: marshall Gromiko’s plan.
Like it or not......................
Latvia thrives on being a bardak.
Time to split from the EvroSoyuz................davai.

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pete

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Aleksejs
Posted: 03 May 2008 05:19 AM   [ Ignore ]   [ # 6 ]  
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Perhaps those who do come back will want to be more involved politically to precipitate changes of the perpetual muttsiness. It’s too soon to cry “fire” when it comes to economy in my opinion. It’ll be tough next couple of years, I’m sure, but a crash? Seems a bit premature to draw that conclusion. And if Ireland is experiencing similar problems (their GDP has slowed down significantly also - and the construction sector has been suffering), then why not come and be miserable at home among friends.

Here is another sign that eastern Europeans are leaving home. 

http://www.guardian.co.uk/politics/2008/apr/30/immigrationpolicy.immigrationandpublicservices

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http://www.allaboutlatvia.com
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Juris Kazha
Posted: 03 May 2008 06:39 AM   [ Ignore ]   [ # 7 ]  
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Aleks,
I am in Sweden now, but saw this same info on the BBC. Garbage in the streets here, but that has always been a problem. Lots of strange Muslim-types too. But on the whole, Sweden is not as far down the Muttistan scale as Latvia. Back to Riga tommorrow,

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Juris K

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