ABSTRACT
The Latvian social policy model is a mixture of conservative and liberal features with evident dominance of the (neo)liberal approach. The authors distinguish four periods of welfare state development in Latvia: (1) active preparation towards EU accession and initial experience as a member state (1995–2007); (2) the great recession years (2008–2012); (3) expansion of family policy and restructuring some areas of social policy (2013–2017); and (4) introduction of progressive tax elements and attempts to put healthcare on an insurance basis (2018–onwards). The major challenges to social policy are the massive emigration of the working age population combined with natural population decline due to ageing and sharp income inequality. Policymakers are becoming aware of the importance of effective social policy in ensuring sustainable economic growth, but the process is prohibitively slow due to a lack of political will and weak accountability of the elite. The social investment approach is becoming more influential in employment, family, and deinstitutionalisation policy.
