Latvia's regions face a defining moment. Demographic pressures, geopolitical uncertainty along its eastern border, and the structural concentration of economic activity around Riga are shaping the conditions under which all of Latvia's territories must compete to attract and retain investment, talent and residents. Meeting these challenges requires more than sector-by-sector policy responses – it demands a systemic, evidence-based approach to regional development that reflects the distinct assets and constraints of individual places.
This report responds to that need. At the request of Latvia's Ministry of Smart Administration and Regional Development (VARAM), the OECD has applied its regional attractiveness framework at the municipal level for the first time in any OECD country – generating internationally comparable, multidimensional diagnostics for all of Latvia's municipalities and planning regions. The analysis reveals both the breadth of Latvia's untapped territorial potential and the governance gaps that limit its conversion into stronger economic outcomes. It identifies practical ways in which attractiveness indicators can support Latvia's regional development policy cycle, from strategic diagnosis through to investment programming, inter-municipal co-operation, and monitoring and evaluation.
The report is intended to serve as a practical resource for national and subnational policymakers across Latvia. The findings and policy considerations presented here are grounded in extensive stakeholder engagement – including workshops with most of Latvia's 42 municipalities and interviews across all five planning regions – and are intended to support more targeted, coherent and place-sensitive regional development in the years ahead.