LOBBYING LANDSCAPE IN LATVIA

No one knows how many active lobbyists there are in Latvia. Often lobbying activities are carried out by lawyers, associations, federations, all kinds of unions, public organisations and PR agencies. Although there is no lobbying industry to speak of in Latvia, there are many professionals who have the competency to carry lobbying activities. They know the decision-making process inside out. They are also masters in providing convincing arguments and writing appropriate reports to sway public opinion in their favour, often by using the media to their advantage. These professionals come from the public sector and NGOs.

Communications with decision-makers in Latvia often take place through influential friends or party members. This approach alienates the public from the public administration. Often NGOs are used as a cover for the realization of certain business interests.

The highest level of lobbying activity is usually noticed just before votes in regard to amendments to laws that govern excise goods, gambling, public procurement, environmental protection and construction. Political parties also request donations for pre-election campaign. In exchange for generosity, politicians often agree not to amend laws that govern the relevant sectors.

The most effective lobbyists in Latvia are in the financial sector (94%), energy sector (87%) and agriculture (87%). Both the private and NGO sectors are considered to be effective lobbyists on agricultural, financial  and energy issues. Long term lobbying takes place directly in relation to the policy areas that are subject to strict regulation (e.g. banking, gambling, alcohol) and public investment budget (e.g. infrastructure). Five to six ministries related to economics and business regulations, as well as the Saeima (Latvian Parliament) and its committees are the main targets of lobbyists in sectors like IT, construction, waste management and healthcare.

Public procurement is a field that sees the majority of lobbying activity in Latvia, as it is an easy way of acquiring state money by quickly and directly influencing business results. 37% of representatives of Latvian entrepreneurial sector admit that corruption has made it impossible for them to win any procurement project in the European Union in the past three years.

Only a third of the agreements between politicians and representatives of interests of different companies are sufficiently transparent. The other two-thirds are made in secret or by corruptive means. An anonymous survey of lobbyists reveals that the approximate price for changing a regulation is roughly EUR 150,000. This is the average price one has to pay to influence the legislative process.

Attempts to accomplish the introduction of any kind of regulation to ensure openness of lobbying activities have been unsuccessful. Proposed solutions have failed to gain political support, because they largely entailed responsibility from the public sector and no additional funding to ensure openness.

Recommendations (TI)

1. Recognize that lobbying and lobbyists are a normal part of the democratic process, amend the Criminal Code to clarify the concept of trading in influence and distinguish it from the legitimate forms of lobbying.
2. Ensure transparency in the decision-making process, improve legislative documentation and its implementation, request government officials and members of Parliament to report on lobbyists’ proposals.
3. Create a register of lobbyists in Latvia in order to make transparent business talks with politicians.
4. Improve public access to information and decision- makers.
5. Enhance the public sector integrity for State Officials, deputies and civil servants through adequate training.
6. Improve the Conflict of Interest Prevention Act [This Law provides for restrictions and prohibitions upon public officials; prevention of conflict of interest in actions of public officials; and  declaration of the financial status of public officials and a mechanism for the verification of the declarations of public officials] in relation to lobbying.
7. Members and factions advisers, assistants and any other Members and parliamentary staff should declare their conflicts of interest and disclose information on their relationship with lobbyists.
8. Provide research capacity at the Parliament level in order to increase the independence of Members' views.
9. Reduce procurement preparation corruption and trading in influence risks.