Latvia (Twilight of a New Era)

Latvia (Latvian: Latvija), officially the Latvian Socialist Republic is a country in the Baltic region of Northern Europe. It is bordered to the north by Estonia, to the south by Lithuania, to the east by the Russian FSR, and to the southeast by Belarus SR. Across the Baltic Sea to the west lies Sweden. The territory of Latvia covers 64,589 km2 and it has a temperate seasonal climate.

World War I devastated the territory of would-be Latvia, along with other western parts of the Russian Empire. The War of Independence (1920) was part of a general chaotic period of civil and new border wars in Eastern Europe. By the spring of 1920, there were actually three governments — Ulmanis' government; the Socialist Latvian government led by Pēteris Stučka, whose forces, supported by the Red Army, occupied almost all of the country; and the Baltic German government of United Baltic Duchy headed by Andrievs Niedra and supported by the Baltische Landeswehr and the German Freikorps unit Iron Division. The Red Army forces with the help of Red Latvian Riflemen recaptured Riga and destroyed the forces of Ulmanis' government. An elected Constituent assembly was convened on 1920 and adopted a socialist constitution, in February 1922. However the Constituent assembly voted against a union with Russian FSR. The socialdemocratic majority being agaisnt it. A radical land reform was the central political question for the young state with the expropriation of the lands of Baltic Germans. By 1923, the extent of cultivated land surpassed the pre-war level. Innovation and rising productivity led to rapid growth of the economy, but it soon suffered from the effects of the Economic Crisis of 1930. A newly elected Bolshevik government pressed for a referendum on the union with the Federation of Socialist Republics (FSR). The results of 1931 where against it and marked the fall of the government and the call for elections. In 1938 it was negotiated a Trade Cooperation Board along Finland, Estonia and Latvia with the International Community of Socialist States (ICSS). The referendum of 1940 gave the approval to the membership in the ICSS

Economy
Agriculture, in early years the main economic sector of Latvia, has been replaced rapidly by industrial production and services. Important industrial sectors are machine building (buses, vans, street and railroad cars, agricultural machinery, washing machines) and electronics (radios, consumer electronics and scientific apparatus) and textiles (synthetic fibers). However for its industrial development Latvia is dependent on imports of raw materials and energy. Latvian agriculture is a major supplier of meat and dairy products, mainly to Belarus and Russian FSR. The membership in the ICSS promoted the creation of new industries in Latvia, including a major machinery factory (Riga Autobus Factory, RAF) in Jelgava, electrotechnical factories in Riga, chemical factories in Daugavpils, Valmiera and Olaine, as well as some food and oil processing plants.

Transportation is a relatively small but important branch of Latvia's economy. The infrastructure is geared heavily toward foreign trade, which is conducted mainly by rail and water. Roads are used for most domestic freight transport. The ports of Riga, Ventspils, and Liepaja are important for trade because they can be used during all seasons and the dense network of railroads and roads links them with many of the landlocked regions of neighboring countries. The country's main airport is in Riga.