by John B. Tieder, Jr., Senior Partner

I have long been fascinated by the Baltic region.  The region that became Latvia, Lithuania, Estonia and the original Prussia, was the last part of Europe to convert to Christianity.  The region has been known previously to invoke images of tree worshipping, human sacrificing giants, the mystical powers of amber and the ancient trading posts of Tallinn, Riga and Königsberg.  In short, I could not resist the invitation to teach at the University of Rezekne in November, 2008, despite the time of year.  For those who do not know, by November the Baltic region is limited to 6-7 hours of daylight, usually cold, cloudy, and rainy; whereas in May and June, there are 20-22 hours of sunshine.  Regardless, I went to Latvia.

Geographically Challenged

Latvia borders the Baltic Sea and is sandwiched between Estonia and Russia to the East, Lithuania to the West, and Belarus on the South.  About twice the size of Belgium, the country has little elevation change and no natural protection such as a mountain range on its borders.  It was and remains completely vulnerable to larger countries in the region who, in the past, regularly took advantage of this geography.  Indeed, Latvia was a “place” not a country until the end of World War I.  Prior to then, the area was a province/colony/protectorate of the dominant regional power of the time: Lithuania, Poland, Germany, Sweden and most recently Russia.

We were there from November 1-15, 2008.  Regrettably, we could not stay for November 18, 2008, Latvia’s celebration of its 90th year of existence as a country.  The past 90 years, however, have not been kind to Latvia; 50 of those years were spent under occupation.  As a result of the Molotov-Ribbentrop pact of 1940 between the Soviet Union and Third Reich Germany dividing Central Europe, Latvia was “given” to Russia.  At that time, Russia inflicted its brand of social change by deporting all persons of consequence to the “Gulag” and nationalizing all property.  When Germany breached the pact and invaded in 1941, the Germans were greeted as liberators.  The Germans then imposed their brand of social change with further deportations and atrocities.

A particularly poignant chapter of Latvian history during World War II was Russia’s and Germany’s recruitment of “independent” Latvian units for their respective armies.  Latvians fought Latvians for the benefit of their oppressors.

At the end of World War II, the Russians returned and completed the depopulation of the country with further deportations to the “Gulag.” There is an excellent museum in Riga, the capital, dedicated to the “Occupation.” It personalizes the depopulation with several individual stories of people who were deported in 1940 and only able to return in the 1980’s, a lifetime in exile.  Latvia remained under Russian control until 1990.  Thus, of Latvia’s 90 year history as a country, only 40 years, 1918- 1940 and 1990-2008 have been free of occupation.

I am not a demographer but it seems that “Latvians,” as an identifiable people, are fighting extinction.  At one time the country was so under populated that Russians were encouraged to immigrate.  Because Latvia had been the location of several Russian military bases, retired soldiers stayed.  As a result, of the present day population of approximately 2,000,000, only 48% are “Latvians”; the majority of the remainder are Russians and Belarusian.  Intermarriages are, of course, common.  Added to this is the limited number of people who speak Latvian (the only other language that is similar is Lithuanian) and “Latvia,” as a culture also seems to be in serious danger of disappearing or at least dilution.

History came alive to me in Latvia.  The Molotov-Ribbentrop pact was not just another distant chapter of World War II; it ruined millions of lives, stole the independence of a fledgling country, and appears to be leading to the end of a distinct population and culture.

Currently, Latvia remains under-populated.  Rezekne University, where I taught (see map) was 5 ½ hours by car or bus and 4 hours by train from the capital, Riga.  With half of the population in Riga, the remainder is spread over the rest of the country, and much of that land appears fallow with deserted rural buildings and fields returned to forest.  At the same time, however, Latvia, and the neighboring Estonia and Lithuania, have the greatest populations of large game such as elk, wild boar and even bear in Europe.  There are also numerous lakes.  Hunting and fishing are popular.

Riga

Riga is the capital, not only of Latvia, but in a commercial and cultural sense, of the three Baltic States.  It is a large port city located approximately 20 km inland from the Baltic on the Daugava River.  I understand Riga to be famous for its art deco architecture.  Maybe, I do not know art deco; I believe this is an example.

To its great credit, Riga has fastidiously maintained its old city.  It is the medieval part of the city, although there are some buildings from as late as the mid-19th Century.  The streets are cobble stones; only selected taxis, delivery trucks and a few other vehicles are allowed in; it has many narrow alleys and walkways; most buildings have been restored; altogether a charming place to spend a few days.

We stayed in a small, very old hotel across the street from St. Paul’s church.  Pack light; most of the old hotels do not have elevators.

Riga has great music.  The opera house is beautiful with a performance almost every night; by way of comparison, the Washington, D.C. Opera typically stages 6-7 operas a year, each one having 6-7 performances.  We went to a unique performance of, “The Magic Flute,” for Euros 4 (app. USD 5) per person.  The Cathedral claimed to have the largest pipe organ in the world, with presentations of regular organ and chamber music concerts at very reasonable prices.

Latvia is primarily a Catholic country, although there is also a large Lutheran community (probably due to the long German influence in the 19th century).  There are many beautiful churches, most of which have been or are in the process of being refurbished.  There is one large Orthodox church, but it is quite new by European standards, i.e., late 19th century.

Every European country has a national drink and Latvia is no exception.  Latvia’s national drink is Black Balsams.  For those of you who have sampled Jägermeister, Black Balsams is similar in color and to me its taste is equally if not more dreadful.  The drink is produced only in Riga and its ingredients are a closely guarded secret.  Riga has several establishments which specialize in Black Balsams served in a variety of ways.  My wife and I found the drink most palatable when mixed with pomegranate juice; the juice totally masking the flavor.  Regardless of the taste, the drinking of Black Balsams is a Riga ritual and should be tried even if only once.

Unlike Black Balsams, Latvia has several good beers (one of my key indicators of the state of civilization of a country) and Riga has many good places to drink the beers.  The restaurants are good, and for the most part, quite reasonable.

An interesting custom in Riga and throughout the country is the placing of locks on a bridge as part of the wedding tradition.  A newly married couple walks to the center of a bridge, places a lock, usually engraved or painted with their names and the date of their marriage, on one of the rails.  Then, they then throw the key into the water and continue to the other side of the bridge.  We noticed these locks everywhere: on major traffic bridges, urban pedestrian bridges, and small rural bridges.  There are, however, some very popular spots such as a park in Riga.  No one could tell us the custom’s origin, but the symbolism is obvious and quite compelling.

Rezekne – The Town

My teaching was at the University of Rezekne, located in the southeastern corner of the country near the Russian and Belarus borders.  The population was more than 50% Russian and most people were Latvian/Russian bilingual.  There are three ways to travel from Riga to Rezekne: a 5 hour automobile journey; a 5 ½ hour bus journey and a 4 hour train journey.  We tried them all – automobile is the best.

The University is the primary industry of Rezekne and the town had the general comfortable feeling of a “college town.” It was well equipped with grocery stores and most other services, except restaurants.  There were only three or four restaurants and all closed quite early.  We cooked most of our meals.  The town was a blend of old and new.   There were the remains of a fort from the 12th or 13th century, traditional houses both refurbished or not and, of course, the ubiquitous, throughout Eastern Europe, decaying concrete apartment  blocks.  I am not an architectural critic, but I doubt the fame of Soviet-era residential architecture will last beyond the time it crumbles, which given appearances, should be soon!

The real charm of Rezekne is in the surrounding countryside with the great amount open space and many lakes.  It is not, however, totally unpopulated.  We stopped to photograph an old farmhouse.  The owner at first appeared to be quite offended by this intrusion into his privacy, but my wife quickly charmed him.

Rezekne – The University

The University reminded me of many small college campuses in the United States.  It was in the process of extensive renovation although construction had stopped due to a lack of money.  Our living quarters were in somewhat less charming married student housing, also in the course of renovation.

As with my other teaching assignments, my primary contact was a regular professor.  In this case, it was Alexi, a professor of criminal law.  He is a former policeman, who had obtained a Masters Degree and was working on his PhD.  We became good friends and it was interesting to hear his perspective on a variety of current events.  On a side note, in his three years as a policeman in Rezekne, there was only one murder; it is apparently quite rare in Latvia.

Another faculty member I came in contact with was studying a form of traditional medicine which was a cross between massage and the “laying on of hands.” It worked!

Rezekne – The Teaching

One of the circumstances I have gotten used to in my teaching assignments is the varying number of students in my classes from day-today.  At the University, on the first day, there were 40 students; the next day over 100.  I, of course, attributed this amazing growth to the original 40 spreading the word about my enthralling teaching.  In fact, however, one of the University’s English teachers had suggested that the entire class take advantage of my presence to hear a native English speaker.  We spent the day discussing U.S. politics, much of it devoted to the election of President Obama, of which had the students had a keen interest.

European legal education starts with the first year of undergraduate study and typically continues for five years.  Thus, law students are usually 18- 22 years old instead of 22-25 as in the United States.  There is then a 2-3 year apprenticeship.  Given their age, none of the students have any recollection or experience with Soviet times (and in Latvia it was Soviet); some of them were born after “the wall came down.”

The Economy and Business Opportunities

Latvia, along with Lithuania and Estonia, is a member of the EU although Latvia does not yet use the Euro for currency.  The currency is the Lat and at the time we were there, the exchange rate was approximately USD 1 = Lat 1.6.  Prices in Riga and the country generally, were quite reasonable at this level, e.g., decent meal for two was USD 40; good hotel – USD 100/night.

Membership in the EU has not been a panacea for Latvia.  Many Latvians, and I have heard the same criticism from other recent entries into the EU that the EU has relegated its new members to specific and subordinate roles so the original members could import into their countries without a tariff.  More than one Latvian expressed the belief that EU has designated Latvia’s role to be a tourist attraction with little opportunity to develop its industry or even agriculture.  I cannot determine whether this view is correct, but it is widely believed in Latvia and is similar to what I have heard in other countries.

Riga is a substantial port city, not only for Latvia but for all three Baltic countries.  However, it does not seem to have the associated “soft” businesses of ship ownership, insurance and financing.  The products produced in Latvia do seem to be more directed to tourism then industrial or even consumer goods.  Amber, which was once more valuable than gold or even diamonds, is still a major product.  There is a great deal of amber-colored plastic and because plastic and amber weigh the same, it is very difficult for the uninitiated to tell the difference.  Alexi, our University mentor, introduced us to some excellent pottery artisans.  They follow traditional methods (e.g., pottery is never fired on a full moon), but it can only be a small contribution to the overall economy.

The opportunities for the construction industry appear limited.  One of the benefits of EU membership is an upgrading of the transportation infrastructure.  The five hour automobile trip from Riga to Rezekne will be four hours when the road construction is completed; however, it does not seem to offer any meaningful opportunities for foreign contractors.

Since the power industry is one of my primary interests, I am always curious as to the source of electricity.  What I learned is that Latvia has some hydro capacity but almost no other power plants; most of its power is imported from Russia or Belarus.  There did not seem to be any plans to change this situation.  Building and industrial construction did not seem to be at a level which would justify most foreign contractors establishing a presence in Latvia.

The Legal System

Latvia, like all other former Eastern Block countries, is a civil law country.  Its Civil Code is typical of other European countries, with special provisions for construction contracts.  I did not hear the criticism of the legal system that I have heard in other countries of their systems.

On to Kosovo

I remain intrigued by the emergence of a free market from the socialist system and am very curious as to how it is being affected by the economic slowdown which started last year.  My next assignment is Kosovo in November, 2009.


The information or opinion provided in this article is the author's own and not necessarily that of Watt, Tieder, Hoffar & Fitzgerald, LLP. The author is solely responsible for the information and opinion that he or she has provided. The information contained herein does not replace seeking specific legal counsel to directly address individual client needs.

Watt, Tieder, Hoffar & Fitzgerald is one of the largest construction law firms in the world, with a practice that encompasses all aspects of construction contracting, claims and disputes resolution, and transactional legal services. WTHF principally represents large general contractors, design firms, and sureties throughout the country and internationally.