Political instability and internal conflict have contributed to Latvia dropping to 54th place in the Global Peace Index compiled by the Australia-based Institute for Economics and Peace.

Last year Latvia improved its ranking to the 39th most peaceful nation in the world, up from 47th in 2007. However, economic and political events late last year—which spilled over into a large Jan. 13 demonstration that ended with some protesters rioting—contributed to the country’s slip in the ranking, according to the institute.

The third annual ranking, now listing 144 countries, was released June 2 in London and Washington, D.C.

The Baltic nation is not alone in becoming less peaceful, according to the institute, which reported that the worldwide change “appears to reflect the intensification of violent conflict in some countries and the effects of both the rapidly rising food and fuel prices early in 2008 and the dramatic global economic downturn in the final quarter of the year.”

No. 1 on the Global Peace Index is New Zealand, which swapped positions with last year’s most peaceful nation, Iceland, which now is No. 4. Iraq remains the least peaceful nation, the same spot it has held in all three years of the index.

Within the Central and Eastern European region, Latvia is in the middle of the pack at 11th. Slovenia, which ranks ninth overall, is listed as the most peaceful in the region. Russia, close to the bottom of the world rankings at 136th, is last in the region.

The index gives each country an overall score from 1, indicating most peaceful, to 5, meaning least peaceful. Latvia’s score in this year’s index is 1.773, the same as Egypt.

Estonia, with a score of 1.661, ranks 38th, down from 35th last year. Lithuania, with a score of 1.687, slipped from 41st last year to 43rd this year, the same ranking it had in the first Global Peace Index.

Further information on the Global Peace Index is available by visiting www.visionofhumanity.org.

The first Baltic Remembrance Day is scheduled June 14 in Washington, D.C., to commemorate the Latvians, Estonians and Lithuanians who were deported by Soviet authorities in 1941.

The event, coordinated by the Joint Baltic American National Committee (JBANC), is scheduled at 4 p.m. at the Victims of Communism Memorial at the intersection of Massachusetts and New Jersey avenues, according to a JBANC press release.

Organizers of the event will call on the Russian government “to take responsibility for its history, and to acknowledge and apologize for these acts, which it has never done,” according to the press release.

Nearly 15,500 Latvian men, women and children were rounded up and deported to Russia from June 13-14, 1941, according to historians. Many of those deported worked for or had ties to the Lavian government, or work social or cultural leaders. Similar deportations took place in Estonia and Lithuania.

A second deportation, aimed largely at people resisting collectization of agriculture, took place in late March 1949. More than 42,000 people were forced to leave Latvia.

Names of those deported will be read aloud during the ceremony.

The Victims of Communism Memorial Foundation will follow Baltic Remembrance Day with two other events.

In a June 16 afternoon ceremony at the U.S. Capitol, the foundation will award the Truman-Reagan Medal of Freedom to U.S. House of Representatives Majority Leader Steny Hoyer; to Romanian Bishop Laszlo Tokes; and, posthumously, to former Secretary of Housing and Urban Development Jack Kemp.

Later that day, the foundation will launch the Online Global Museum of Communism during a reception at the home of Romanian Ambassador Adrian Cosmin Vierita in Washington, D.C. The Web site will be available at www.globalmuseumoncommunism.org.

The Latvian government has reached agreement on a further LVL 500 million in budget cuts, a move observers say should save it from bankruptcy and clear the way for an international loan to be released to the country.

The sweeping cuts appear to touch everyone, from government ministries and their employees, to retired persons, to those who like a stiff drink or a chance at the roulette table.

The cuts are on top of amendments to the state budget approved last year that trimmed the size of the government work force, reduced salaries of those remaining and increased taxes—including bumping the value added tax to 21 percent.

The government, led by Prime Minister Valdis Dombrovskis, signed off on the cuts June 11 after meeting with representatives from various political parties and social partners including labor unions, employers and pensioners. The cuts are needed if Latvia is to receive the next installment from a EUR 7.5 billion loan package offered by the International Monetary Fund, the World Bank, the European Union and others.

The Saeima may vote on the cuts June 15, according to media reports.

Government operations would take the brunt of the cuts.

The budget foresees a 30 percent reduction in the central administration of government ministries, as well as a halving of expenses from state agencies. The boards of directors of state enterprises would be eliminated. Training of civil servants would be halted and the Latvian School of Public Administration’s functions decreased. The work of a state commission to determine losses caused by the Soviet Union’s occupation (Komisijas PSRS režīma nodarīto zaudējumu aprēķināšanai) would cease on Aug. 1.

In addition to overall cuts in spending for services and goods, a number of ministries would see their budgets reduced. Among these are the Ministry of Finance, LVL 46.1 million; the Ministry of Health, LVL 45 million; the Ministry of Agriculture, LVL 23.8 million; the Ministry of Defense, 15 million; the Ministry of Education and Science, 10 million; and the Ministry of the Interior, LVL 9 million.

Besides cuts to government operations, social spending also is to see a decrease of more than LVL 90 million. Pensions would be cut by 10 percent, pensions for those who are working would plummet by 70 percent and support for parents and families would shrink by 10 percent.   
   
The cuts are to be offset by more than LVL 50 million in additional revenue, according a press release from the Cabinet of Ministers. The state budget would take a larger share of dividends from state enterprises, 80 percent of last year’s profit, except for energy company Latvenergo, which has to turn over 100 percent. The budget projects this will raise LVL 8.8 million. A higher excise tax on beer and liquor would result in LVL 3.8 million more in revenue. The minimum untaxed personal income would drop to 35 lats from 90 lats, resulting in LVL 43.8 million more for the government. Gambling duties and taxes would be increased, too.

After a June 8 meeting with the government coalition and social partners, President Valdis Zatlers told reporters that as soon as the changes to this year’s budget are approved, work will begin on cutting another LVL 500 million in next year’s budget.