Part 417

Legal system: based on civil law system

Suffrage: 18 years of age; universal

Executive branch: chief of state: President Guntis ULMANIS (since 7 July 1993) was elected by Parliament (Saeima) in the third round of balloting; election last held 7 July 1993 (next to be held NA June 1996) head of government: Prime Minister Andris SKELE (since 21 December 1995) was appointed by the president cabinet: Council of Ministers was nominated by the prime minister and appointed by the Supreme Council

Legislative branch: unicameral Parliament (Saeima): elections last held 30 September-1 October 1995 (next to be held NA October 1998); results - Saimnieks 18%, LC 17%, For Latvia 16%, TB 14%, LNNK 8%, Unity 8%, LSZ/LKDS 7%, Harmony 6%, Socialist 6%; seats - (100 total) Saimnieks 18, LC 17, For Latvia 16, TB 14, LNNK 8, Unity 8, LSZ/LKDS 7, Harmony 6, Socialist 6

Judicial branch: Supreme Court, judges' appointments are confirmed by the Saeima

Political parties and leaders: Democratic Party "Saimnieks" (DPS), Ziedonis CEVERS, chairman; Latvia's Way (LC), Valdis BIRKAVS; People's Movement For Latvia, Joachim SIEGERIST; Fatherland and Freedom (TB), Maris GRINBLATS; Latvian Unity Party (LVP), A. KAULS; Latvian National Conservative Party (LNNK), A. SEILE; Green Party (LSZ), O. BATAREVSK; Latvian Farmers Union (LZS), A. ROZENTALS; Christian Democrat Union (LKDS), P. KLAVINS; National Harmony Party (TSP), Janis JURKANS; Latvian Socialist Party (LSP), F. STROGANOVS; Latvian Liberal Party (LLP), J. DANOSS; Political Association of the Underprivileged (MPA), B. PELSE, V. DIMANTS, J. KALNINS; Latvian Democratic Labor Party (LDDP), J. BOJARS; Party of Russian Citizens (LKPP), V. SOROCHIN, V. IVANOV; Popular Front of Latvia (LTF), Uldis AUGSTKALNS; Political Union of Economists (TPA), E. KIDE; Latvian National Democratic Party (LNDP), A. MALINS; "Our Land" (MZ), M. DAMBEKALNE; Anticommunist Union (PA), P. MUCENIEKS; Latvian Social-Democratic Workers Party (LSDSP); Party for the Defense of Latvia's Defrauded People; Latvian Independence Party (LNP), V. KONOVALOUS

International organization participation: BIS, CBSS, CCC, CE, EBRD, ECE, EU (applicant), FAO, IBRD, ICAO, ICRM, IDA, IFC, IFRCS, ILO, IMF, IMO, Intelsat (nonsignatory user), Interpol, IOC, IOM (observer), ITU, NACC, OSCE, PFP, UN, UNCTAD, UNESCO, UNIDO, UPU, WEU (associate partner), WHO, WIPO, WMO, WTrO (applicant)

Diplomatic representation in US: chief of mission: Ambassador Ojars Eriks KALNINS chancery: 4325 17th Street NW, Washington, DC 20011 telephone: (202) 726-8213, 8214 FAX: (202) 726-6785

US diplomatic representation: chief of mission: Ambassador Larry C. NAPPER embassy: Raina Boulevard 7, LV-1510, Riga mailing address: PSC 78, Box R, APO AE 09723 telephone: (2) 210-005 FAX: (2) 226-530

Flag: two horizontal bands of maroon (top and bottom), white (middle, narrower than other two bands)

Economy -------

Economic overview: Latvia's economic transformation to a modern market economy - rivaled only by Estonia among the former Soviet states - faltered in 1995 as a result of banking and budget crises. Latvia's largely unregulated financial sector suffered a series of bank failures, including the collapse of the country's largest commercial bank - Bank Baltija - due largely to criminal activity by the owners. The government's attempts to compensate depositors of failed banks exacerbated an existing budget shortfall; poor revenue collection and a soft treasury bill market had already caused the government to incur a larger than expected deficit early in the year. As a result of the crises, Latvia's budget deficit for 1995 was $168 million, double that originally planned. In addition, GDP growth came to a halt. The Central Bank maintained its tough monetary policies - severely limiting credits to the state, despite the budget problems - helping to keep annual inflation the lowest among the Baltic states, at about 20%. New Prime Minister SKELE wants to invigorate the privatization of industry; agriculture already is mainly in private hands.

GDP: purchasing power parity - $14.7 billion (1995 est.)

GDP real growth rate: -1.5% (1995 est.)

GDP per capita: $5,300 (1995 estimate as extrapolated from World Bank estimate for 1994)

GDP composition by sector: agriculture: 9% industry: 31% services: 60% (1994 est.)

Inflation rate (consumer prices): 20% (1995 est.)

Labor force: 1.407 million by occupation: industry and construction 41%, agriculture and forestry 16%, other 43% (1990)

Unemployment rate: 6.5% (1995 est.)

Budget: revenues: $NA expenditures: $NA, including capital expenditures of $NA

Industries: buses, vans, street and railroad cars, synthetic fibers, agricultural machinery, fertilizers, washing machines, radios, electronics, pharmaceuticals, processed foods, textiles; dependent on imports for energy, raw materials, and intermediate products

Industrial production growth rate: -9.5% (1994 est.)

Electricity: capacity: 2,080,000 kW production: 5.5 billion kWh consumption per capita: 1,864 kWh (1993)

Agriculture: grain, sugar beets, potatoes, vegetables; meat, milk, eggs; fish

Illicit drugs: transshipment point for illicit drugs from Central and Southwest Asia and Latin America to Western Europe; limited producer of illicit opium; mostly for domestic consumption; also produces illicit amphetamines for export

Exports: $1.3 billion (f.o.b., 1995 est.) commodities: timber, textiles, dairy products partners: Russia, Germany, Sweden, UK, Lithuania

Imports: $1.7 billion (c.i.f., 1995 est.) commodities: fuels, cars, chemicals partners: Russia, Germany, Sweden, Ukraine, UK, Lithuania, Finland

External debt: $NA