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SHRINKING GOVERNANCE – ECONOMICAL ASPECTS IN LATVIA CASE

A. Puzulis, A. Miglavs, P. Lakovskis, M. Usca

First published: 2019https://doi.org/10.5593/SWS.ISCSS.2019.2/S04.033View metrics

Abstract

Shrinking is a series of causes that have different effects on the rural areas. These effects are often direct and indirect, immediate or may express in a long-term dimension. The causes of shrinking are diverse: e.g. economic recession, increasing urbanization, changes in environmental conditions, etc. The most commonly shrinkage characteristic is a permanent decline in population. Latvia like several other European countries is losing population. As a monocentric country Latvia has some additional challenge - depopulation in the rural areas. The policy response to population decline is reflected to local governance and municipal services, where administrative territorial reform and the amalgamation of municipalities are one of the key. The aim of the study is to analyze the effects of shrinkage management in Latvia on the basis of existing administrative structure. The focus of the research chosen by the authors best describes the policy response to this complex problem. The article is based on the analysis of state policy, local government documents, socio-economic indicators, population projection for 2030, analysis of local government budget expenditure, analysis of spatial data at the level of administrative territories. We conclude that the response of government to development trends is not always adequate to deal with the effects of shrinking. The change of existing approach of the local municipality equalization fund, the budgeting principles of local governments is needed, due to lack of it sustainability. New management governance that takes into account shrinking causes and processes, is needed, based on more complex view on financial, structural and spatial contexts.

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Publication details

Title
SHRINKING GOVERNANCE – ECONOMICAL ASPECTS IN LATVIA CASE
Authors
A. Puzulis, A. Miglavs, P. Lakovskis, M. Usca
Proceedings
6th SWS International Scientific Conference on Social Sciences ISCSS 2019
Publisher
STEF92 Technology
Year
2019
Pages
265-272
SWS Citekey
Puzulis20194265272
ISSN
2682-9959
ISBN
978-619-7408-92-8
Language
en
Publication type
Proceedings Paper
Keywords
shrinkagerural developmentadministrative reformadministrative reform.
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