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City Guide - Riga - Business | ||
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Business Business Profile: The Latvian economy as a whole is growing steadily despite the painful divorce from Russia in 1991. In the years immediately following independence, the economy struggled as many of the traditional Russian markets dried up and prices rose and fuel shortages were common. The lowest point came in 1995 when the largest bank, Banka Baltija, collapsed leaving countless Latvians financially crippled and economic confidence very fragile. In recent years, the economy has stabilised and is growing steadily as Riga solidifies its position as the de facto business capital of the Baltics. Latvia has shown its commitment to attracting foreign businesses with a dedicated agency set up to attract and aid overseas investors - Latvian Development Agency, Perses 2 (tel: 728 3425; fax: 728 0478). The trend has been towards Latvian/foreign investor joint ventures with smaller scale entrepreneurs, but major players such as Arthur Anderson, Price Waterhouse and Radisson hotels all have a presence in Riga, among other international names. The main Latvian industries are traditionally wood processing, textiles and agriculture, but since 1991 the service sector has become increasingly important. Riga has always been the economic heart of the country, but this role has been accentuated as traditional ways of living dissolve and the demands of big business focus their attention solely on the capital. Unemployment in Latvia as a whole is running at 8.5%, while in Riga the figure is slightly lower at around 8%. Internet cafés are springing up around Riga, but for high-speed connections and a good range of business services head for the Radisson Hotel, Amberland, Kuga 24 (tel: 706 1180). Of the public internet cafés, three of the most reliable are Biltecks, Jekaba 20, Electronic Café, Elizabetes 83-85 and Internet Klubs, Brivibas 3a. Business Etiquette In general, Riga is moving away from how things used to be done in the old Soviet Union days, and firmly embracing the Western European example of how business is conducted. Hence, few businesspeople have any major problems in a city where the etiquette is fairly similar to that in London, Paris or Frankfurt. Dress code is relatively formal with suit and tie expected for business meetings, although new technology-based industries have got behind the trend of dressing down in more casual gear. Handshakes are the normal way to start any meeting and gifts are appreciated, especially luxury items like watches and quality single-malt Scottish whisky. Business hours are normally Monday to Friday 0900-1700. The old Soviet era tendency to turn public holidays into an excuse for two or three days off work seems to be waning. |