Download Losses to the economy of Latvia by USSR occupation

Losses to the economy of Latvia by USSR occupation
Loss analysis agencies: Parliamentary Commission and the LORS
The determination of losses to Latvia and its people resulting from the Soviet
occupation was started on august 5, 2005, by a Special Commission of the Saeima
Council of Ministers with representatives from 17 governmental and public
institutions. In 4 years, studies were conducted in 25 economic environmental and
demographic areas; 17 in historic areas; and 50 analyses by experts. In concert with
the Latvia Archives a book was published about deportations and databases were
developed.
When the Commission's work was halted by the economic crisis,in 2009, the
Latvia Occupation Research Society (LORS) was founded with 40 representatives who
had been involved in the research.
The LORS continued the research activities; organized several international
and local conferences;, published several books; organised seminars; provided
interviews to the media, and issued various informative pamphlets. International
cooperation was organized.
With initiative from the LORS, work of the Parliamentary Commission was
resumed in 2013. Both organizations continue research of determining losses from
the USSR occupation, focused on four main areas:
1. Losses to the economy. In 1990 when Latvia was in the process of separating
from the Soviet Union, the USSR demanded compensation for investment in the
economy of Latvia.
However, Latvian economists had already calculated that there were large losses
to the Latvian economy. Using these studies, a special Saeima comission quickly
showed large losses to Latvia using the balance sheet method. The calculations
showed that each year, Latvia had given USSR much more than it had received
(similarly in Estonia and Lithuania).
An analysis of national income loss in
comparison with economy nodel of Finland, using as a base 1945, when the income
per capita in Latvia was about 15% higher than in Finland. (similar to the years 1925
to 1934). The income loss came out to 60.4 billion Rubles ($36.9 billion) This
calculation did not included damage to the environment; losses due to deportations
and loss of life;, and costs of maintaining USSR army and repressive security organs in
Latvia.
During 2006-2009 the Commission conducted 8 research and 14 expert
analyses.
The necessary methodology was developed.
A starting point was
established for Latvia towards the end of the 1930s, in comparison with the countries
which at that time were at a similar level in terms of economic structure and
development. Using available statistical sources, the analyses showed that if Latvia
had not have been invaded, Latvia's GDP would have gained about 123 billion. lats
(173 billion. EUR), (see. attached graphs).
2. Damage to the environment: Six studies were made to determine the amount
of environmental pollution in 656 regional territories and large sites, on costs for their
rehabilitation. The total cost of cleaning up environmental damage related to the
Soviet occupation of Latvia, at the various sites, was calculated at EUR 712 million .
There sums do not include the big industrial objects, due to lack of data; and former
military areas, which have not yet been surveyed. Additional costs of cleanup for
these are estimated at EUR 899 million. Additional costs will be added related to
underground drilling , chemical and military contamination and pollution of the
Baltic Sea.
3, Demographic losses: There were 11 studiess and 22 expert analyses. During the
USSR occupation, demographic data was classified as secret and data available is
distorted. Two methods were used to calculate hese losses: direct demographic
losses (executions, deportations, forced emigrations) and indirect demographic
losses. Adding up all known direct demographic losses, amounts to a loss of over
10 million man-years.
Largest indirect demographic losses due to the occupation relate to the
decline in fertility, deterioration of health and premature mortality. These losses in
viability and fertility caused by the USSR occupation plus the Chernobyl accident
victims, the time spent in the army, social and moral losses, etc. are in excess of 21
million man years.
4. Losses due to militarization: During the USSR occupation, the whole economy
and society itself were militarized.
It is estimated that Soviet military spending
comprised 50-80% of GDP. As a result, the end of the USSR occupation, led to a
collapse of the economy and the social network.
5. Losses not calculated: After independence Latvia has spent an average of about
EUR 213 million, to cover compensation for "Chernobyl affected", to repair
environmental damage and for various social and integration programs. In additon,
there are the immense costs of changing the Latvian economy to fit the needs to
today's market economy in Europe and the world.
IN SUMMATION: - Adding up the various losses, one may conclude that the
successor State of the USSR 50 years of occupation of Latvia, Russia owes Latvia at
least EUR 280 billion, without adding costs incurred after Latvia regained its
independence.
The significance of these calculations:
They are an important refutation of
Russia's claims. Russia has an analogous loss analysis institute. It's scientists know
that "Baltic States are not indebted to the USSR. In fact, Russia pays compensation
to those it deported. But if Russia were to recognize this fact, then many countries
would demand similar compensation. Therefore, the Russian media is still forced to
issue misinformation that all former USSR republics are indebted to the USSR.
These calculations are important because:
* they show that the heires to former USSR, Russia is indebted to Latvia
* they show why Latvia’s economy and income are behind developed
European ountries;
* the international community needs to understand why we are in
this economically retarded situation.
All people in Latvia should know these facts, in order to understand why we
do not live as long as citizens in well developed countries and why our icomes are
lower. If the occupation had not occurred, our incomes would be three times higher
than they are today.
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Iekšzemes kopprodukts uz 1 iedzīvotāju
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PSRS
Latvija
Som ija
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Aus trija
Dānija
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USD pēc oficiālā kursa
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The GDP of Latvia 1950 – 1990 was EUR 177 billion (Year 2000 prices). If Latvia income per person in year 2000 had
been equivalent to Finland, the GDP would have been increased by EUR 176 billion.
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Latvijas faktiskais IKP un
neiegūtais IKP salīdzinājum ā ar Som iju
(1990.gada cenās, milj. rbļ.)
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Neiegūtais IKP
salīdzinājumā ar
Somiju
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Latvijas faktiskais IKP
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0
1950
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Ruta Pazdere, LOIB,
+371 29521934, [email protected]
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