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Economic Security – comparatively unstable and unforeseeable

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Economic security is primarily perceived as the economic stability – the ability to accumulate provisions, obtain the necessary financial resources for survival and the reliability of a pension system.[19] On a macroeconomic level, that means also financial resources to ensure the execution of state functions, as well as normal operation of economic processes and stability of the financial system.

Moreover – in relation to the significance of the economic security, there is a widely spread and justified opinion of it as a foundation of its political security, namely, that just the financial resources are the magic levers which, sooner or later, start shaping the national political scene. Tens of pillars of this “magic” platform could be mentioned here – the state’s ability to ensure the availability of various resources, economic policies and implementation thereof, tax policies, a positive investment climate, labour force availability, inflation etc., which, in the best case scenario, can provide stable progress and development, but in the worst case scenario – distort both the economic and political foundations of the state…

Within the context of the tense global events of last year, many indicators, such as the increase in prices of resources, goods and services, have gone well beyond any previously planned boundaries. For example, in terms of the annual increase in producer prices in January of 2023 on the EU scale; in the group of the four states in question except for Moldova, which is not a member state of the EU yet; its indicator is: 24.5% [31]), Latvia has taken a stable leading position with 38.8%, leaving behind Lithuania (26.8%), Poland (26.7%) and Estonia (12%). [32]

It is generally known that these indicators are directly proportional to the government’s ability to implement reasonable measures for the economic support and inflation control. Based on the above information, society makes its judgements regarding the abilities of its leaders to take care of the economic security of the population.

During the survey, responding to the question “To what extent are the parliament and the government able to protect the people’s economic security?” a full conviction of such abilities was expressed by 1 percent of respondents in Latvia and Estonia, whereas, in Lithuania, such an opinion was expressed by 2 percent of the interviewees. Readiness to rely on the parliament and the government to a large extent in this regard was expressed by 12 percent of respondents in Latvia, 18 percent in Lithuania and 16 percent in Estonia. The opinion that parliament and the government are unable to ensure such a protection was expressed by nearly a half (49%) of respondents in Latvia, whereas, in Lithuania and Estonia, such an opinion was shared by 38 and 39 percent of the interviewees, respectively.[42]

[19] https://www.apgads.lu.lv/izdevumi/brivpieejas-izdevumi/rakstu-krajumi/latvijas-iedzivotaju-subjektiva-drosibas-uztvere/ekonomiska-drosiba/

[31] https://tradingeconomics.com/moldova/producer-prices-change

[32] https://www.leta.lv/lat/home/important/1713BA07-4364-459D-9369-9161F300FEF2/?utm_source=newsletter&utm_medium=hot_news&utm_campaign=leta_newsletter&fbclid=IwAR3COm6G6AwjG60-jTvMfj039722Q0KMwncyjjJu6a3j_FSCPma5V2SCMkk

[42] The survey conducted by the market and public opinion research company in Lithuania, Latvia and Estonia – reflected the attitude of the residents of the Baltic States towards their national security. This survey was conducted on the Internet in the autumn of 2022.

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