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Latvian Economical Politics, Social, Educational and Security Politics
Also there are conts which are out of budget,they are created for good aims to help invalids for example,but sometimes revenues are bigger then real expenses and this money goes directly to the officials pockets.In some countries there are created such a funds where are sent monet from selling natural resoures or international money,so these fund are not that transparent and it is difficult to control them.,so official get money from these funds.
The main problem cause by corruption are:
• inefficient distributing and spending of state`s resources and money
• uneffectiveness of corruptive financial streams according to ecnomics
• loss of taxes,when tax department bodies just take part of the taxex
• decrease of state`s apparatus work in general
• bankruptcy of private businessmen
• decreasing investments in production,lower economic growth
• lower quality of public service
• aimeless usage of international finanical help,which makes this help ineffcicient
• growth of social inequality
• growth and development of organised criminals,bands transform into mafias
• problems with political legitimacy power
• decrease of social morals
It is not possible to absolutely destroy corruption,and spending a huge amount of resources to defeat it also isn`t a profitable activity,but still there should always be a balance,otherwise state can lose control over situation.
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Latvia like other 30 states after USSR,Yugoslavian and Czechoslovakian fall had to make a change and to replace”developed socialism”( where authoritarian power and plannig economy were dominating) with democracy and market economy ,so privatisation,price liberalisation processes started ,so from that moment prices were regulated by offer and demand,national currences appeared. Yes,even if average level of living in Latvia increases though increases the difference between society`s layers ,jini coefficient raises and that means that rich become even more richier,the opposite happens with poorer population.Middle class is not big and it isn`t developing,that`s very bad,because actually this is the main point of political and economical stability in the state.
