ABSTRACT
The Republic of Latvia was established on 18 November 1918 and occupied by the Soviet Union in 1940, but regained its independence in 1990. In 2004 Latvia joined the European Union. The capital city is Riga. The country is divided into four regions and the major cities impact the economic and social development of each region. Despite Latvia's positive overall development since 1990, and relatively good handling the financial crisis of 2008, the country still faces a number of challenges. The shadow economy remains an issue. Social challenges include a relatively high poverty headcount: after a sharp drop in 2010 to 19% it has increased to 19.4% in 2012. Awareness of sustainability is increasing among entrepreneurs and policy-makers and ethical and sustainable business is being discussed in terms of tax payments, green procurement and new business models. Lude is a "slow design" company that creates home textiles with the purpose of creating employment and better life conditions for the elderly.
