Assault on Ministries: Which Agencies the Latvian Government Could Do Without 0

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Assault on Ministries: Which Agencies the Latvian Government Could Do Without

As is known, the Union of Greens and Farmers (SZK), which is part of the ruling coalition in Latvia, changed its demands or ultimatums during the saga surrounding the issuance of a loan for airBaltic – first they wanted to transfer airBaltic under the supervision of the Ministry of Economics, then they tried to dismiss the Minister of Communications, Atis Shvinka.

They also wanted Prime Minister Evika Silina to personally take political responsibility for the loan repayment and the situation at airBaltic...

Change of Demands

But in the end, the "green peasants" settled on the fact that

  • first, Shvinka takes political responsibility for the loan repayment, meaning he is not dismissed before that,
  • second, Shvinka conducts a reorganization of the ministry.

With these demands, Prime Minister Silina agreed immediately: firstly, there is still plenty of time until August 31, the day of the loan repayment, and everything can change, and secondly: "reorganization" is a too vague concept and, in any case, Shvinka is unlikely to implement it before the elections.

And if he openly imitates reorganization, then... it will still be pointless to dismiss him, as it is clear that he will not manage to reorganize anything before summer, and by summer it will be just around the corner before the elections... Why dismiss a minister if there will be a new government anyway?

Meanwhile, it must be acknowledged that reorganization is indeed useful and necessary. Moreover, radical reorganization is needed. The head of the Ministry of Economics, Viktor Valainis (SZK), even suggested... the liquidation of the Ministry of Communications with the transfer of its functions to other ministries!

Asheraden's Orders to... Forget

Let’s remember that about a year ago, the first to mention the reorganization of public administration was Finance Minister Arvils Asheraden ("New Unity"). He stated that it was worth considering the merger of several ministries. Moreover, the finance minister promised to present a plan for the merger of ministries.

However, the miracle did not happen. Coalition partners were categorically against such reorganization, Asheraden was "misunderstood" by his party members led by the prime minister, who did not want to "touch" public administration, i.e., the civil servants – the main electorate of the prime minister's party.

As a result, the topic was "swept under the rug" – Asheraden did not return to it in discussions about budget cuts.

But we will return! Especially in light of the prime minister's promise to the "green peasants" to monitor how Shvinka will reorganize his ministry.

The Largest and Most Problematic

It should be noted that the Ministry of Communications is the largest and, at the same time, the most complex ministry of the government. Just consider.

It encompasses the entire transport sector (aviation, railways, road transport). The Ministry of Communications oversees the transit and logistics sector (ports), as well as postal services.

Under the supervision of the Ministry of Communications are 5 agencies, 13 capital companies, and the scandalous airBaltic. Alongside the problematic national airline, the Ministry of Communications also oversees a challenging project – the European railway Rail Baltica!

Since there are no good solutions regarding airBaltic, let alone the railway project of the century, the head of the Ministry of Communications is inherently a political suicide. It is no coincidence that the "progressives" after the dismissal of the previous minister Brishkens simply begged the prime minister to "allow an exchange," meaning to hand over the portfolio of the Minister of Communications either to the prime minister's party or to the "green peasants," taking a safer ministry.

But it was in vain – no one wanted to take this "gift."

One Office Instead of Three

However, even this ministry can be managed competently and achieve success – it is simply necessary to find the right manager. Shvinka is, to put it mildly, weak for this role – both due to a lack of experience in public administration and due to a lack of experience specifically in this area.

As for the liquidation of the Ministry of Communications, it is quite a sound idea – it would be entirely possible to merge three economic ministries: the Ministry of Communications, the Ministry of Economics, and the Ministry of Agriculture, creating one MINISTRY OF NATIONAL ECONOMY. Within this ministry, a unified management of all state capital companies, i.e., state enterprises, could also be established.

It would also be logical to reduce the boards of state enterprises or leave one board for enterprises in the same sector. This would yield multi-million savings.

For Senka's Cap

It is clear that it would be reasonable to merge other ministries as well, simultaneously merging the sectoral state capital companies. The Ministry of Health could be merged with the Ministry of Welfare, the Ministry of Justice with the Ministry of Smart Administration and Regional Development... We do not need so many ministries and such a large apparatus of public administration!

This is unnecessary considering the declining population, the development of technologies (the ability to process documents remotely and resolve issues without using offices), and the economic (financial) situation in the country. By the way, during the First Republic, there were only 9 ministries (now there are 14), and back then the only technology was poorly developed analog telephone communication.

And yet – will the "green peasants" be able to insist on the reorganization of the Ministry of Communications? Unlikely. It seems that this was a bluff both on the part of the prime minister – just to persuade the "green peasants" to vote for the issuance of the loan to airBaltic, and on the part of the "green peasants" themselves – they needed to somehow save face after they once again surrendered their positions.

Distraction

It is clear that with 5 months until the elections and considering the summer vacations, even with the best intentions, it will not be possible to conduct a large-scale reorganization. The most that is possible is to create the appearance of reorganization.

Moreover, the "progressives" with the active support of "New Unity" are actively lobbying – apparently to distract attention – a completely unnecessary reform: the transfer of non-bank creditors under the supervision of the Bank of Latvia.

Moreover, everyone opposes this reform – both the non-bank creditors themselves and the currently supervising agency – the Consumer Rights Protection Center, as well as non-governmental organizations and the Ministry of Economics... However, the "reform" is stubbornly being pushed through...

We Will Wait for the Elections

If there is any hope for reforms in public administration, it will only be after the elections or rather – after a new government is formed.

Although there is a high probability that after the elections, politicians... will quickly forget their "previous" intentions and determination to implement reforms. Politicians are always for reforms – only if they do not concern the ministries they themselves lead...

At the Last Minute

The "New Unity" party in its program for the upcoming elections to the Saeima will propose to merge the Ministry of Health and the Ministry of Welfare, Health Minister Hosam Abu Meri said in an interview with Latvian Television.

Abu Meri noted that he does not see healthcare separately from the sphere of welfare and social policy. In his opinion, these areas should be merged.

"We have started to live longer, but we have more problems and diseases. Therefore, the social component should go hand in hand with the healthcare sector," the minister emphasized.

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