Dr. Guntis Ulmanis
Latvia in the New Millennium

Address at the University of Washington
Walker Ames Room, Kane Hall
February 14, 2000

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James West (Chair, Russian, East European and Central Asian Studies Center):

Good afternoon, ladies and gentlemen. My name is James West, and I am the Chair of the Russian, East European and Central Asian Studies Program at the University of Washington. It is my very great pleasure and honor this afternoon to welcome Dr. Guntis Ulmanis.

Guntis Ulmanis is a familiar name to everybody who follows developments in the Baltic nations. At a crucial time in the history of the Baltics, in the decade that has elapsed since the fall of the Soviet Union, Dr. Ulmanis served two terms, ending just this past year, as President of Latvia. It is our very good fortune to have this afternoon such a distinguished representative of his country to speak with us today. At the University of Washington, we are proud to be counted among those who do, in fact, follow developments in the Baltic nations. The Baltic Studies Program in the Department of Scandinavian Studies, fueled by the talents and energies of another friend of ours, another Guntis, already has many achievements to its credit, amongst which is making us the only university in the United States where Latvian is consistently taught, and is moving towards a major endowment for the teaching of all three Baltic languages, which will anchor Baltic studies securely on the map of this part of the American academic world.

The REECAS program works very closely with the Scandinavian Department to support Baltic studies, which adds a very important component to the area studies curriculum in the university. Baltic Studies has many supporters here, both inside and outside of the University: Both the Dean of the College of Arts and Sciences and the Director of the Jackson School of International Studies have helped to fund this event and many others like it. And that is, of course, in addition to adding their organizational and curricular support for Baltic Studies at the University. It goes without saying that without the unflagging support and generosity of the Baltic community in the Seattle area, Baltic Studies here would not be where it is today, and we count our many supporters out in the Baltic community here as true friends of our common endeavor. Many other organizations have contributed to the effort, and I would particularly like today to acknowledge Bridge Builders International, who generously paid for Dr. Ulmanis`s travel to Seattle for this event.

Dr. Ulmanis, we are honored, delighted to have you with us. As the principal architect of Latvia`s foreign policy in the last few years, and we look forward enormously to hearing your talk, sharing your wisdom on "Latvia in the New Millennium." Dr. Ulmanis.

Dr. Guntis Ulmanis:

Ladies and Gentlemen, my Latvian friends! I am very pleased to speak before you today. I have been in the United States for twenty days, and on each of these days I have had the occasion to speak to two or three groups of Americans. I have unfortunately read all of the speeches that I had written for this trip, and therefore today I will speak without written notes. Today will be a kind of encore for my entire trip and an expression of gratitude to you, for the work you have done.

The song you heard a few moments ago was also sung in 1994 at the Liberty Monument in Riga, in honor of the American President, Bill Clinton. Mr. Clinton was moved to tears by this song, and almost the same thing is happening to me today. This song is not only a melody, this song is not only folklore; this song is like a bridge which unites our hearts, our minds and our feelings of responsibility.

A few words about myself, as is the custom in your country. I was born in the days and in the year when the Second World War began. I was born in the days when the most criminal treaty in the world was signed by Molotov and Ribbentrop. And nobody could imagine at the time how complicated and difficult the fate of Latvia and Latvia's people would be.

My uncle, Karlis Ulmanis, who served for many years as President and Prime Minister of Latvia, lived for ten years in the United States, in Lincoln, Nebraska, and in Houston, Texas. Un these ten years he saw and experienced many transformations that took place in American politics and business. Having returned to Latvia before World War I, he established a new nation which today we call Latvia. In the principles by which Latvia was founded, Karlis Ulmanis took many principles originating in your country. And many years later I had the honor to continue this work. I served as President for two terms, and, as in your country, that is the maximum allowed for one person. But these years were the years which brought independence to Latvia and laid the future foundations of that independence.

Why is Latvia so interesting, and why do we look to the future with such great optimism? A few days ago, when I spoke to Senator Hatfield, he thought for a moment and said, "I know the Latvians." And these were Senator Hatfield's words which I repeat here; he said, "America knows Latvians as honest, hardworking people, as people who value families and love their children, and who do their work well." After that I thought about how flattering the words of this Senator had been, and that we must do everything, that we are doing everything in order that these words would be justified and heard throughout the world.

Where is Latvia located: in the North, in the East, or in Central Europe? In 1993, when I discussed this question with American politicians, they usually drew a straight line from the Balkans to the Baltic, and often discussed these two places as one. Today this time has passed, and the Balkans have gone into history as a place where blood is spilt, where there are conflicts and discord, and where the problems continue to be enormous. The Baltic has emerged in the world as a place where post-Soviet problems are being solved successfully. I personally believe that we belong to North Europe, with our character, our stance and our confident action in all matters.

When Clinton arrived in Riga in 1994, he arrived in a country which was free of foreign military forces, and which was a typical democratic country. At the turn of the millennium, America announced to the world that democracy and freedom have won a stable place in the world, but that we do not reap the benefits of freedom and democracy in all parts of this world. The Baltic country, Latvia, is a living example of this work for democracy and freedom.

The Latvian language has been spoken for more than four thousand years. And I am thankful today to your university for tending and developing this language.

The capital city of Latvia, Riga, is still either the largest, or one of the largest cities in North Europe. This year and next year we are celebrating the eight hundred year anniversary of our capital city. You have heard of the Hansa League, which once guaranteed trade and many other economic freedoms in Europe. Riga is and will remain the capital city of this Hansa League. At the end of the seventeenth century, The Russian Czar Peter the First invaded Latvia and announced that a window from Russia to Europe had been carved out. In these past ten years, together with the United States we have built a door instead of this window, because it is much more comfortable and polite to walk through a door than climb through a window. I think this is deeply symbolic, and it is a motif which we always carry in our minds.

When the Pope visited Riga in 1995, he visited not only the Latvian capital city but also the countryside, and upon departing he said to me, "Riga is like a piece of amber in the great ocean of the world. You must polish this piece of amber, and keep it forever shiny and bright." At that time, as I thought about the Pope's visit, I understood that at the foundations of my work I should always give politics equal weight with spiritual life. Our nation was oppressed for many years by Communist ideology. We needed to replace this ideology with something else. And in its place we put democratic freedoms and the liberal market.

Regarding our country's liberalism: Of course, it was a kind of shock therapy which resulted in difficult times for people. But that is the fate of many people who live in times of transition. And for this reason I am grateful when I thank the American government and President for the fact that together we have signed a document unprecedented in history, the Partnership Charter between the Baltic States and America.
[Text of US-Baltic Charter: http://www.state.gov/www/regions/eur/ch_9801_baltic_charter.html]
And there is a deep meaning to the word, "partnership," because it is expressed in cooperation between the United States and Latvia in politics, economy and security. We have been very successful in security issues, we have formed very successful ties in the area of politics. But we cannot say the same for economic cooperation. This is not a criticism, but an invitation.

In these twenty days I visited many businesses in the Silicon Valley; I visited investment agencies, and we discussed how more could be invested in Latvia. And at this point, talking about investments, I would like to characterize our economic policies on the level of macroeconomics: A macroeconomic description of Latvia includes transportation and three significant European harbors. It includes the forest products industry and our forests. It includes textiles and medical products.

But I would particularly like to emphasize the significance and potential of high technology. Latvia does not have many natural resources. Latvia has air, water, land and its people. And we must nurture and multiply this wealth that we have in people. Several hundred software programming companies have emerged in Latvia. These people have been developing for many decades. Already in the Soviet period, many military factories were located in Latvia whose specialists continue to live there. And we have the means to annually produce a thousand or a thousand and a half young people who can work in high technology. Our programmers have received high acclaim, and produce software programs for many European countries. In this area we are also teachers for Russia.

And here I come to the relations currently forming between Latvia and Russia. In a speech I gave in Washington DC, I said that nobody chooses their neighbors, just as nobody chooses their mother-in-law! And one must become accustomed and live with that fact. I personally have been very lucky with my mother-in-law. But I have not been so lucky with Russia. When on May 9, 1995, I was invited to Moscow to celebrate Victory Day, I declined the invitation to Moscow, because Russia or the Soviet Union did not leave the three Baltic countries when World War II ended, and occupied these countries for more than fifty years.

America maintained a very firm diplomatic stance: It did not recognize the incorporation of the Baltic States into the Soviet Union. But there were years when realistically the United States could do little in this matter. The accumulated period of waiting was released in these past ten years, when the United States did much more than we expected. We had formed our foreign policy toward Europe, but it came out that in these ten years the United States have become our priority.

Today the animosity toward Russia has ended. People who ten years ago were emotional have today become pragmatic. People are seeking their homeland, their fatherland and their roots. I understand the many Russians who could find for themselves no place other than Latvia. And I am convinced that the next ten years will be an example to the world, of how a small nation and small population can integrate a majority. Today many Russians are acquiring Latvian citizenship. They are respecting, honoring and learning Latvian laws and Latvian traditions. We have done and regularly do surveys to learn the opinions of Russians living in Latvia, and their answers are as follows: Ninety five percent prefer to remain in Latvia and acquire Latvian citizenship, and prefer not to return to Russia. This factor is very significant, it demands great patience and responsibility on our part.

We presently have no disagreements or problems with Russia. There is only disagreement about the direction of development: Latvia is developing as a typical democratic country, and Russia is a country which has not had democracy at any time in history. This is a moment in history which demands responsibility, a moment when Russia can turn its course and become a democratic country for the first time in the history of its existence. And we feel this responsibility, because the Baltic States are like a litmus test for Europe and the United States in their hopes to establish democracy in Russia.

We must not abandon Russia in this very difficult time. No matter how great our hatred may be, and how painful the memories of history. Because in the new century, new policies and a new spectrum of relations must be created, the likes of which have not existed in the past two thousand years.

Yes, we are very different, but in this diversity is our strength. And therefore, while I was in Washington DC last year, I strongly supported NATO enlargement and our inclusion in NATO structures. American policy today is unambiguous: The door to NATO is open. Everything depends on how well we can prepare ourselves to pass through this door. Russia protests against this, but this protest must not have veto rights. Consistent Western policies in the past decades have taught Russia to yield and to think on a democratic level. Stopping NATO enlargement would send the worst signal for the future of the Baltic States, and it could also be the most demoralizing signal to Russia, which is beginning to think that it has a role to play from positions of power. And therefore I think the policy of the United States has been carefully thought out, and that the enlargement of NATO will continue.

Global competitiveness and competition is the most significant factor that today is causing both Europe and America to become ever more active in the economic sphere. Europe understands this very well, and for this reason the enlargement of the European Union is proceeding at a very rapid pace.

We are among the countries which have begun negotiations to join the European Union. Negotiations are currently taking place on various levels, and each country is negotiating in a different combination of programs. The Central European countries are today negotiating in eight to twelve different programs [chapters]. Latvia is prepared today to participate in fifteen chapters of negotiations. And it is my vision that Latvia will be one of the first countries from the former Soviet sphere to accede to the European Union.

Of course, world events influence these processes, and the events in Kosovo have affected the developments of both NATO and EU enlargement. But it is political decisions which have brought Rumania and Bulgaria into the discussions. In economics and the general level of life, as well as in matters of economic standards, we are a country which is prepared to fulfill the requirements of the EU in their essence.

Today the Russian crisis is waning, and the year 2000 may be the first year when Latvia, the Baltic States, and also Russia will see growth in their Gross National Product. But great structural changes have taken place during this crisis. If four or five years ago 60% of our foreign trade was with Russia and the CIS, then today 60% of our trade is with the European Union, and less than 10% with Russia. But as an economist I do not think that these are numbers to brag about, because we are a country which supports the free flow of capital, a country which supports free trade without significant tariffs (although some tariffs still exist). A country which has the most stable currency in Europe after 1990, and maybe the only country, not counting the UK, whose money, the lats is stronger than the dollar. (But there is some humor in this, and those who are interested can study the details for themselves!)

In the coming year, our Gross National Product could grow by 3%. And we are liberal, but not liberal to the extent that we would build an enormous budget deficit. In a few years, we are planning to not have a deficit budget.

And so, it has happened that our spiritual, cultural and political values have developed much more quickly than material values. I am not familiar with American statistics, but in Latvia 25% of the population is of retirement age, persons who do not work. This is a problem; how can we give these people the support they need to continue living? Unemployment in Latvia is at 9%, but I think that it will decrease. I would rather not mention the median wage in Latvia, but I will do so anyway. It is about $250 or $300 per month. But we do not promise the West that we will provide cheap labor. Because we know the value of our people, and our salaries will increase each year. And to the business representatives who hope that Latvia will become something similar to South Asia, I think that this will not happen.

During these twenty days, I traveled not only to large cities, but also to rural areas of the United States. And I observed the ability of all Americans to purchase things and live on a good level even if they do not earn much. And therefore I spoke to the business and investment representatives about the small and medium-sized businesses which must be created in Latvia.

If you were to ask me what has been my priority, and what will continue to be my priority in the future, I would answer with one word: education. It is unbelievable, that in these ten years we have founded eight new institutions of higher education. Yes, maybe this is too many, maybe they will not have the backing needed to survive, but we have this strong urge to study and learn. And we will continue to do this persistently.

In this time, we have renovated more than two thousand churches. We have created a new Christian Academy in Latvia. We have established a Faculty of Theology at the University of Latvia. Our children have religion classes in school. We are not religious fanatics, but we are a deeply Christian nation. Because we see and know that our future strength will be in this spiritual development and in belief.

Who are we? We are a path. We are a conviction. We are a belief. We are a path between West and East. And not only a geographical or political path. We are a spiritual path between East and West. We are a force which does not ask for help. We are a force which can assist others in the future. In Europe, the time of large countries has ended. In Europe, collective will and the power of small countries prevail. Europe is irreversibly going the path of democracy and freedom, and Latvia has been, and will continue to be a bright example on this path.

Thank you.

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