In the early medieval period, the region's peoples resistedChristianisation and became subject to attack through theLivonian Crusade. Latvia's capital cityRiga, founded in 1201 by Germans at the mouth of the Daugava, became a strategic base in a papally-sanctioned conquest of the area by theLivonian Brothers of the Sword. It was to be the first major city of the southern Baltic and, after 1282, a principal trading centre in theHanseatic League.
By the 16th century,Baltic German dominance inTerra Mariana was increasingly challenged by other powers. Because of Latvia's strategic location and prosperous trading city of Riga, its territories were a frequent focal point for conflict and conquest between at least four major powers: theState of the Teutonic Order, thePolish–Lithuanian Commonwealth,Sweden and theRussian Empire. The last period of externalhegemony began in 1710, when control over Riga and parts of modern-day Latvia switched from Sweden to Russia during theGreat Northern War. Under Russian control, Latvia was in the vanguard of industrialisation and the abolition ofserfdom, so that by the end of the 19th century, it had become one of the most developed parts of theRussian Empire. The increasing social problems and rising discontent that this brought meant that Riga also played a leading role in the1905 Russian Revolution.
From the mid-1940s theLatvian Soviet Socialist Republic was subject to Soviet economic control and saw considerableRussification of its peoples. However, Latvian culture and infrastructures survived and, during the period of Soviet liberalisation underMikhail Gorbachev, Latvia once again took a path towards independence, eventually succeeding in August 1991 to be recognised by Russia the following month. Since then, under restored independence, Latvia has become a member of theUnited Nations, enteredNATO and joined theEuropean Union.
Latvia's economy suffered greatly during theGreat Recession which caused the2008 Latvian financial crisis. Worsening economic conditions and better job opportunities in Western Europe have caused a massive Latvian emigration.[2]
Corded Ware culture area included LatviaComb pottery example from Estonia, 4000–2000 BCNeolithic bone toolsBaltic tribes (purple) in 7–8th centuries
The Ice Age in the territory of present-day Latvia ended 14,000–12,000 years ago. The first human settlers arrived here during thePaleolithic Age 11,000–12,000 years ago. They were hunters, who following the reindeer herds camped along the rivers and shore of theBaltic Ice Lake. As thegeology of the Baltic Sea indicates, the coastline then reached further inland. The earliest tools found nearSalaspils date to the late Paleolithic age, circa 12,000 years ago, and belong to theSwiderian culture.
During theMesolithic Age (9000–5400 BC) permanent settlements ofhunter-gatherers were established. They hunted and fished, establishing camps near rivers and lakes; 25 settlements have been found nearLake Lubāns. These people from theKunda culture made weapons and tools from flint, antler, bone and wood.[3]
At the beginning of the Late Neolithic (2900–1800 BC), present-day Latvia was settled byBalts belonging to theCorded Ware culture. They were forefathers of the Latvians, and these have inhabited most of Latvian territory since the third millennium BCE.[4]
With the introduction of iron tools during the earlyIron Age (500 BC – 1st cent. BC), agriculture was greatly improved and became the dominant economic activity. Bronze, traded from foreigners since Latvia has no copper or tin, was used for making a wide variety of decorative ornaments.[3]
Starting from the Middle Iron Age (400–800 AD) the local inhabitants began to form distinct ethnic and regional identities. Baltic peoples eventually became theCuronians,Semigallians,Latgalians andSelonians, while Finnic peoples became theLivonians,Estonians andVends; localchiefdoms emerged.
At the beginning of the current era, the territory known today asLatvia became famous as a trading crossroads. The renownedtrade route from the Varangians to the Greeks mentioned in ancient chronicles stretched fromScandinavia through Latvian territory viaDaugava to the ancientKievan Rus' andByzantine Empire. The ancient Balts actively participated in this trading network. Across Europe, Latvia's coast was known as a place for obtainingamber and Latvia sometimes is still calledDzintarzeme (Amberland). Up to and into theMiddle Ages, amber was more valuable than gold in many places. Latvian amber was known in places as far away asAncient Greece and theRoman Empire, and theAmber Road was intensively used for the transport of amber to the south of Europe.
During theVendel Period a Scandinavian settlement was established near the town ofGrobiņa, most likely by people fromGotland. This colony which numbered a few hundred people existed from a date between 650 and 850 AD. Many chronicles mention that Curonians paid a tribute to Swedish kings.
During the Late Iron Age (800–1200 AD) thethree-field system was introduced, rye cultivation began, and the quality of local craftsmanship improved with the introduction of thepotter's wheel and better metal working techniques. Arab, Western European and Anglo-Saxon coins dating from this era have been found. A network of wooden hill-forts was built, which provided control and security over the land.[5]
Baltic Tribes, circa 1200 CE.Estimated territories under Jersika rule
In the 10th century, the various ancient Baltic tribal chiefdoms started forming early realms. Regional tribal cultures developed in the territory of modern-day Latvia and northern Lithuania, including theCuronians,Latgalians,Selonians,Semigallians (Latvian:kurši, latgaļi, sēļi, zemgaļi) and the FinnicLivonians, who united under their local chiefs.
The largest tribe was the Latgalians who also were the most advanced in their socio-political development. The main Latgalian principality,Jersika, was ruled byOrthodox Christian princes from the Latgalian-Polotsk branch of theRurik dynasty. The last ruler of Jersika, mentioned in theChronicle of Henry of Livonia (a document that describes events of the late 12th and early 13th centuries) was KingVisvaldis (Vissewalde, rex de Gercike). When he divided his realm in 1211, part of the country was called "Lettia" (terra, quae Lettia dicitur), probably the first time this name is mentioned in written sources.
In contrast, the Curonians, whose territories extended into today's Lithuania andCuronian Spit, maintained a lifestyle of sea invasions that included looting and pillaging. On the west coast of theBaltic Sea they became known as the "Baltic Vikings."
Selonians and Semgallians, closely related toAukštaitians andSamogitians, were known as prosperous farmers and resisted Germans the longest under such chiefs asViestards. Livonians lived along the shores of theGulf of Riga and were fishers and traders, and they gave the first German name to this territory –Livland.
Before the German invasions started in the late 12th century, Latvia was inhabited by about 135,000 Baltic people and 20,000 Livonians.
By the end of the 12th century, Latvia was increasingly often visited by traders from Western Europe who set out on trading journeys along Latvia's longest river, the Daugava, toKievan Rus'. Among them wereGerman traders who came with Christian preachers who attempted to convert thepagan Baltic andFinnic nations to theChristian faith.
In early 1180sSaint Meinhard began his mission among DaugavaLivonians. They did not willingly convert to the new beliefs and practices, they particularly opposed the ritual ofbaptism. News of this reached PopeCelestine III in Rome, and it was decided in 1195 thatLivonian Crusade would be undertaken to convert pagans by force. Meinhard was followed byBerthold of Hanover, who was killed in 1198 near the present-day Riga by Livonians.
Berthold's successor, BishopAlbert of Riga, who spent almost 30 years conquering local rulers, established the German hegemony which lasted until 20th century independence. Much of Albert's rule is described in theLivonian Chronicle of Henry. While Riga had been a trading port since ancient times, Albert is credited with its founding in 1201 when he established it as his seat of power. Riga gradually became the largest city in the southern part of the Baltic Sea.
A state known asTerra Mariana, laterLivonian Confederation, was established in 1207. It consisted of various territories that belonged to the Church and Order in what is now Latvia andEstonia and was under the direct authority of the Pope of Rome. In 1228 theLivonian Confederation was established.
The Order of theLivonian Brothers of the Sword was founded in 1202 to subjugate the local population. The Livonians were conquered by 1207 and most of the Latgalians by 1214. When Brothers of the Sword were decimated at theBattle of Saule in 1236, they asked for incorporation into theTeutonic Order as theLivonian Order. In 1260, theBattle of Durbe destroyed Teuton hopes for a wide land bridge between their territories in Prussia and Courland.
By the end of the 13th century, the Curonians and Semigallians were subjugated (in 1290 the majority of Semigallians left German-conquered areas and moved to Lithuania), and the development of the separate tribal realms of the ancient Latvians came to an end as Germans introduced direct rule over subjected peoples.
In 1282, Riga (and laterCēsis,Limbaži,Koknese andValmiera) were included in the Northern German Trading Organisation, better known as theHanseatic League (Hansa). From this time, Riga became an important point in west–east trading, and it formed closer cultural contacts withWestern Europe.
Between 1297 and 1330 theLivonian Civil War raged, which started as a conflict between the Bishop of Riga and the Livonian Order.
Native people initially retained much of their personal freedoms as the number of Germans was too small to implement a total control beyond the requirements to follow Christian rites, pay the required taxes and participate as soldier in wars. In case ofCuronian Kings the former tribal nobility retained a privileged status until the proclamation of independent Latvia. During the 14th century peasants had to pay 10% to the Church and work 4 days ofsocage per year.
In the 15th–16th centuries, the hereditary landed class ofBaltic nobility gradually evolved from the German vassals of the Order and bishops. In time, their descendants came to own vast estates over which they exercised absolute rights. At the end of the Middle Ages thisBaltic German minority had established themselves as the governing elite, partly as an urban trading population in the cities, and partly as rural landowners, via a vastmanorial network ofestates in Latvia. The titled landowners wielded economic and political power; they had a duty to care for the peasants dependent on them, however in practice the latter were forced intoserfdom.
By 16th centurysockage had increased to 4 – 6 days per week and various taxes to 25%. Peasants increasingly tried to escape to freedom, either by moving to Riga (they could gain freedom if they lived there for one year and one day) or another manor. In 1494 a law was passed which forbade peasants to leave their land, virtually enslaving them.
TheReformation reached Livonia in 1521 with Luther's follower Andreas Knöpken. During the Protestant riot of 1524 Catholic churches were attacked and in 1525 freedom of religion was allowed. First Latvian parishes were established and services were held in Latvian. Protestants gained support in the cities, and by the middle of the 16th century, the majority of the population had converted toLutheranism.
The Livonian war put an end to the Livonian Confederacy. Despite the very real threat of Muscovite rule over the whole Livonia, Western Christian countries managed to establish their control over this area for the next 150 – 200 years.
In September 1557 the Livonian Confederation and thePolish–Lithuanian union signed theTreaty of Pozvol, which created a mutual defensive and offensive alliance. TsarIvan the Terrible ofMuscovy regarded this as a provocation, and in January 1558 he reacted with the invasion ofLivonia that began theLivonian War of 1558–83. On August 2, 1560, the forces of Ivan the Terrible destroyed the last few hundred soldiers of the Livonian Order and theArchbishop of Riga at theBattle of Ērģeme.
On June 10, 1570Duke Magnus of Holstein arrived in Moscow, where he was crowned King of Livonia. Magnus took an oath of allegiance toIvan the Terrible as his overlord and received from him the corresponding charter for the vassal kingdom of Livonia in what Ivan termed his patrimony. The armies of Ivan the Terrible were initially successful, takingPolotsk in 1563 andPärnu in 1575 and overrunning much of Grand Duchy of Lithuania almost up to the eastern borders ofVilnius voivodeship.
In the next phase of the conflict, in 1577 Ivan IV took the opportunity of the Polish-Lithuanian Commonwealth's internal strife (called the war againstGdańsk in Polish historiography), and during the reign ofStefan Batory invaded Livonia, quickly taking almost the entire territory, with the exception ofRiga andRevel.
During thePolish–Swedish War (1600–1629) Riga and the largest part of Duchy of Livonia came under Swedish rule in 1621. During the Swedish rule, this region was known as the "Swedish Bread Basket" because it supplied the larger part of theSwedish Kingdom with wheat.
Riga was the second largest city in theSwedish Empire at the time. Together with other Baltic Sea dominions, Livonia served to secure the SwedishDominium maris baltici. In contrast to Swedish Estonia, which had submitted to Swedish rule voluntarily in 1561 and where traditional local laws remained largely untouched, theuniformity policy was applied in Swedish Livonia underKarl XI of Sweden: serfdom was abolished in the estates owned by the Swedish crown, peasants were offered education and military, administrative or ecclesiastical careers, and nobles had to transfer domains to the king in theGreat Reduction. These reforms were subsequently reversed byPeter I of Russia when he conquered Livonia.
In 1632 the Swedish kingGustavus Adolphus foundedDorpat University which became the intellectual focus for population of Livonia. The translation of the whole Bible into Latvian in 1685 byJohann Ernst Glück was subsidized by the Swedish government. Schools for Latvian speaking peasantry were set up in the country parishes. In Latvian history this period is generally praised as the "good Swedish times".
After Gotthard Kettler became the first duke, other members of the Order became the nobility, with their fiefdoms becoming their estates. Kettler received nearly one-third of the land in the new duchy.Mitau (Jelgava) was designated as the capital and a Landtag was to meet there twice a year.
When Gotthard Kettler died in 1587, his sonsFriedrich andWilhelm became the dukes of Courland. They divided the Duchy into two parts in 1596. Friedrich controlled the eastern part,Semigalia (Zemgale), with his residence in Mitau (Jelgava). Wilhelm owned the western part, Courland (Kurzeme), with his residence in Goldingen (Kuldīga). Wilhelm regained theGrobiņa district when he married the daughter of theDuke of Prussia. Here he developedmetalworking,shipyards, and the new ships delivered the goods of Courland to other countries. Wilhelm's conflict with local nobles ended with his removal from the duke's seat in 1616 and Friedrich became the only duke of Courland after 1616.
Under the next duke,Jacob Kettler, the Duchy reached the peak of its prosperity. During his travels in Western Europe, Jacob became the eager proponent ofmercantilist ideas. Metalworking and ship building became much more developed, and powder mills began producing gunpowder. Trading relations developed not only with nearby countries but also withBritain,France, theNetherlands andPortugal. Jacob established the merchant fleet of the Duchy of Courland, with its main harbours inWindau andLibau. In Windau 120 ships were built, of which over 40 were warships. The duchy owned a large fleet and established twocolonies —St. Andrews Island in the estuary ofGambia River (inAfrica) andTobago Island (in theCaribbean Sea). Courland related place names from this period still survive today in these places.
The last duke,Peter von Biron who ruled under heavy Russian influence foundedAcademia Petrina in 1775. In April 1786 he purchased the Duchy ofSagan from theBohemianLobkovic family, from then additionally using the title of Duke of Żagań. In 1795, Russia determined the further fate of Courland when with its allies it began thethird division of Poland. Given a "nice recommendation" by Russia, Duke gave up his rights in return for a large payment, signing the final document on March 28, 1795.
Enlightenment ideas influenced local Baltic Germans, two of whom played great role in the creation of Latvian nation.Gotthard Friedrich Stender wrote the first Latvian-German and German-Latvian dictionaries. He also wrote the first encyclopedia “The book of high wisdom of the world and nature” (1774) and the first illustrated Latvianalphabet book (1787).
Garlieb Merkel in 1796 published his book “The Latvians” in which exposed the horrible conditions of serfdom under which Latvians were forced to live because of cruelty of their German masters.
In 1700 theGreat Northern War between Sweden and Russia started largely becausePeter the Great wanted to secure and enlarge Russian access to the Baltic ports. In 1710 Russians conquered Riga andEstonia and Livonia capitulated. Losses from the military actions were multiplied by theGreat Northern War plague outbreak which killed up to 75% of people in some areas.
In 1713 Peter established the Riga Governorate, and after various administrative and territorial reforms, theGovernorate of Livonia was finally established in 1796. Latvians call it Vidzeme Governorate (Vidzemes guberņa). Sweden officially gave up its claims to Swedish Livonia with the 1721Treaty of Nystad. The Treaty enshrined the existing privileges and freedoms of the GermanBaltic nobility. They were allowed to maintain their financial system, existing customs border, self-governing provincial Landtags and city councils,Lutheran religion and German language. This special position in the Russian Empire was reconfirmed by all Russian Emperors fromPeter the Great (reigned 1682–1725) toAlexander II[9] (reigned 1855–1881). Only the 1889 judicial reform imposed Russian laws and a program ofRussification enforced school education in Russian.
After theThird Partition of Poland and financial settlement with the last Duke of Courland and Semigallia in 1795 theCourland Governorate was created in which the Germans retained their privileges and autonomy for another century. Russian empire now possessed all the territories inhabited by Latvians.
In 1812Napoleon's troopsinvaded Russia and the Prussian units under the leadership of the field marshalYorck occupied Courland and approached Riga and theBattle of Mesoten was fought. Napoleon proclaimed restoration of Duchy of Courland and Semigallia under French and Polish protectorate. The Russian governor-general of RigaIvan Essen was expecting attack, and set the wooden houses of Riga suburbs on fire to deflect the invaders leaving thousands of city residents homeless. However,Yorck did not attack Riga and in December Napoleon's army retreated.
After the October 1802 Kauguri rebellion, czarist authorities reacted with the law of February 20, 1804, which was aimed at improving peasant condition in the Livonian Governorate. Peasants no longer were tied to the land owner, but to the land, so they could be sold only together with the land. Peasants were divided in two classes – people of manors and plowmen. Plowmen were divided into farm-owners and free people. Farms from now on could be inherited within the family. Amount and length of socage now was regulated and limited. This law was opposed by the nobles, who in 1809 secured changes in the law which again gave them more power over peasants and socage.[10]
In 1816 Governorate of Estonia proposed a law for emancipation of serfs which was based on the model of thePrussian reforms. Czarist authorities ordered Courland Landtag to come up with a similar proposal, which was accepted on August 25, 1817, and proclaimed in Jelgava on August 30, 1818, in presence of Czar Alexander I. Emancipation came into force in 1819 and continued until 1832 as only a selected number of peasants was emancipated each year. Emancipation gave peasants personal freedom, but no land, which they had to lease from land-owners. Peasants were not completely free, as they still could not move to another governorate or city without land-lord's permit.
After Emancipation in Estonia and Courland, the situation in Livonia was resolved by the law of March 26, 1819, which was very similar to the Emancipation law of Courland. It was proclaimed on early 1820 and was in force until 1832.
AsLatgale was part of the Russian Vitebsk Governorate, serfdom here lasted until 1861, when theEmancipation reform of 1861 was proclaimed in the Russian Empire. Initially peasants kept their land, but had to continue performing socage and rent payments. This was ended by the new law of March 1, 1863.[10]
After 1832 peasants were allowed freedom of settlement within the governorate, but only in 1848 Courland peasants were allowed to settle in towns and cities, many of which until then had mostly German and Jewish populations.
The provisional Livonian agrarian law of July 9, 1849 which came int force on November 20, 1850, maintained German nobility's property rights, but allowed peasants to rent or buy the land. By 1856 only 23% of farmers were paying land rent, while the rest were still performing socage. In 1860 this law became permanent and allowed increasing number of farmers to purchase their homes. An 1864 law permitted creation of credit unions, and this improved access to capital for farmers wanting to buy their homes from German land-lords. Just before the start of World War I about 99% of houses in Courland were bought and 90% in Livonia.[11] This created a land-owning Latvian farmer class which increased in prosperity and sent its sons to schools of higher education.
In 1870-80s many peasants who were unable or unwilling to purchase their land, used the opportunity to emigrate to Siberia, where land was given for free. By the start of World War I approximately 200,000 Latvian farmers had moved to farming colonies in Siberia.
While there are records of Latvian last names going as far back as 15th century, almost all of them were inhabitants of large cities and often adopted Germanic family names. Some peasants had family names in the 17th century, but majority had only first name until the emancipation. Most people were identified by the name of their house or manor. Emancipation created the need for identity papers and with this, for family names. Livonian peasants had to choose family names by 1826, in Courland majority names were selected in the campaign that lasted from October 1834 until July 1835. Peasants were prohibited from choosing family names of German nobility and majority chose names related to animals, plants and trees, especially popular were diminutive forms –Bērzs (birch),Bērziņš (small birch),Kalns (hill),Kalniņš (small hill).
Latvia was predominantly Lutheran and Catholic, but in 1729Herrnhuter Brethren started their mission in Livonia, with center inValmiera, their missionaries made significant headway despite the opposition of the German landlords who controlled the Lutheran clergy. The Imperial government proscribed the Moravians 1743–1764. This was the first Christian movement where Latvians become involved voluntarily. Brethren operated independently from the German landlords and their meeting houses were run by Latvians, giving them a chance to create their own communities. Brethren reached the peak of their popularity around 1820, a few years after serfdom was abolished in Livonia Governorate. 30 parishes had almost 100 meeting houses and 20,000 members.
The Imperial government sponsored the Russian Orthodox Church, as part of its program of russification, but Lutheranism remained the dominant religion, except Latgale where Catholicism was dominant. Other Protestant missions had some success including theBaptists,Methodists andSeventh Day Adventists.[12]
In 1571 the first Jews were invited to settle in Piltene and a Courland Jewish community was formed. After incorporation into Russian Empire more Jews from the former Polish-Lithuanian Commonwealth settled here.
Latvian national awakening could start after the emancipation of serfs and growth in literacy and education rates. Educated Latvians no longer wanted to be Germanized.
In 1822Latviešu avīzes the first weekly in Latvian began publishing. In 1832 weeklyTas Latviešu Ļaužu Draugs began publishing. The first Latvian writers who wrote in Latvian appeared – Ansis Liventāls (1803–77), Jānis Ruģēns (1817–76) and others. In 1839 institute for the elementary school teachers led byJānis Cimze opened inValmiera.
By the middle of 19th century,the First Latvian National Awakening began among ethnic Latvian intellectuals, a movement that partly reflected similarnationalist trends elsewhere in Europe. This revival was led by the "Young Latvians" (in Latvian:jaunlatvieši) from the 1850s to the 1880s. Primarily a literary and cultural movement with significant political implications, the Young Latvians soon came into severe conflict with theBaltic Germans. During this time the notion of a united Latvian nation was born. Young Latvians also began to research Latvian folklore (See:Latvian dainas) and ancient beliefs.
In the 1880s and 1890s therussification policy was begun byAlexander III aimed at reducing German autonomy in theBaltic provinces. Introduction of the Russian language in administration, court and education was meant to reduce predominance of German language. At the same time these policies banned Latvian language from public sphere, especially schools, which was a heavy blow to the new Latvian culture.
With increasing poverty in many rural areas and growing urbanization and industrialization (especially of Riga), a loose but broad leftist movement called the "New Current" arose in the late 1880s. It was led by the future National poetRainis and his brother-in-lawPēteris Stučka, editors of the newspaperDienas Lapa. This movement was soon influenced byMarxism and led to the creation of theLatvian Social Democratic Labour Party. While Rainis remained a social democrat until his death, Stučka become allied with Lenin, established the firstBolshevik state in Latvia and died in Moscow.
Latvia welcomed the 20th century with an explosion of popular discontent during the1905 Revolution. It started with the shooting of demonstrators in Riga on January 13, progressed to mass strikes in October and armed uprising in December. The revolution was aimed not only against the czarist authorities, but against the hated German barons. For in Latvia most did not feel primarily oppressed by Russia or Russians, but by theBaltic Germans —roughly seven percent of the population— who had instituted a feudal system with themselves at the top and Latvian-speakers being left mostly poor and landless.[13] As such, it involved not only left wing social democrats and industrial workers, but also more conservative peasants and Latvian intelligentsia since —despite being second class citizens in their own country— Latvia was also a highly literate and industrialised society. Riga was behind only St. Petersburg and Moscow by the number of industrial workers, and at the turn of the century over 90% of Latvians could read.[13] In this regard, Latvia was equally primed for radical leftism and nationalism. In all, spearheaded by theLatvian Social Democratic Workers’ Party (LSDSP), the governorates making up what is now Latvia were probably the most ungovernable in the whole Russian Empire.[13]
Following the shooting of demonstrators inSt. Petersburg on January 9, 1905, a wide-scale general strike began in Riga. On January 13 Russian army troops opened fire on demonstrators in Riga killing 73 and injuring 200 people.
During the summer of 1905 the main revolutionary events moved to the countryside. 470 new parish administrative bodies were elected in 94% of the parishes in Latvia. The Congress of Parish Representatives was held in Riga in November. Mass meetings and demonstrations took place including violent attacks againstBaltic German nobles, burning estate buildings and seizure of estate property, including weapons. In total 449 German manor houses were burned.
In the autumn of 1905 armed conflict between the German nobility and the Latvian peasants began in the rural areas ofVidzeme and Courland. In Courland, the peasants seized or surrounded several towns where they established revolutionary councils. In Vidzeme the fighters controlled the Rūjiena-Pärnu railway line. Altogether, a thousand armed clashes were registered in Latvia in 1905.[14]
Martial law was declared in Courland in August 1905 and in Vidzeme in late November. Special punitive expeditions by Cossack cavalry units and Baltic Germans were dispatched in mid-December to suppress the movement. They executed over 2000 people without trial or investigation and burned 300 houses and public buildings. The executed often were local teachers or peasant activists who had shown disrespect to German nobles, not necessarily hardened revolutionaries. 427 people were court martialed and executed. 2652 people were exiled toSiberia, over 5000 went into exile to Western Europe or the US. In 1906 the revolutionary movement gradually subsided but some local protests and actions of forest guerrillas continued until 1907. They executed some daring raids – freeing their imprisoned comrades from Riga police HQ on January 17, 1906, February 26,1906 Helsinki bank robbery and the 1910Siege of Sidney Street in London.
Among the exiles were activists from the left and right who in just 10 years would fight against each other over the future of Latvia, such as the future Prime MinisterKārlis Ulmanis, National poetJānis Rainis and earlyCheka leaderJēkabs Peterss.
On August 1, 1914, Germany declared war on Russia. Since Courland Governorate had a direct border with Germany it was immediately involved in warfare. On August 2 German warshipsSMS Augsburg andSMS Magdeburg shelled port cityLiepāja, causing it light damage. On August 19 German navy tried to captureUžava Lighthouse but were repelled, after which German artillery destroyed it. In October British submarinesHMS E1 andHMS E9 from theBritish submarine flotilla in the Baltic arrived in Liepāja. On November 17 German navy again shelled Liepāja and military installations ofKarosta damaging some 100 buildings.
By May 1915 the war reached most of Latvia. On April 30 Russian Commander-in-Chief ordered the evacuation of all Jews from Courland within 24 hours. On May 2, 1915, German attack againstJelgava was repelled. On May 7 the Germans capturedLiepāja andKuldīga.
On June 29 the Russian Supreme Command ordered the whole population ofCourland evacuated, and around 500,000 refugees fled to the east. Much of the crops and housing was destroyed by the army to prevent them from falling into the German hands. Some of the refugees settled inVidzeme but most continued their way to Russia where they had to settle in primitive conditions, suffering from hunger and diseases. In August 1915 the Latvian Refugee Aid Central Committee was established in Petrograd, it was run by future politiciansVilis Olavs,Jānis Čakste andArveds Bergs. Committee organized refugee housing, organized 54 schools, 25 hospitals and distributed aid. Many refugees returned to Latvia only after 1920, when a peace treaty was signed between Latvia and Soviet Russia. Many Latvians stayed in the new Bolshevik state, achieving high army and party offices, only to be purged and executed by Stalin during 1937–38.
On July 19, 1915, the Russian War Minister ordered the factories of Riga evacuated together with their workers. In the summer of 1915, 30,000 railway wagons loaded with machines and equipment from factories were taken away reducing the population of Riga by some 50%. This action effectively destroyed Riga as a great industrial center until the later industrialization under the Soviet regime.
On August 1, the Germans captured the capital of Courland, Jelgava. A week laterBattle of the Gulf of Riga started and eventually was lost by Germany. By October 23, Germans capturedIlūkste and were within the striking distance ofDaugavpils with its fortress.
After on July 17 and 18, 1915 Germans capturedDobele,Talsi,Tukums andVentspils, a public proclamation by State Duma members, written byKārlis Skalbe, called for the formation of volunteerLatvian Riflemen units. In August the formation of Latvian battalions started. From 1915 to 1917, the Riflemen fought in the Russian army against the Germans in defensive positions along theDaugava River, notably theNāves sala (Island of Death) bridgehead position. In December 1916 and January 1917, they suffered heavy casualties in month-longChristmas Battles. Many of them were buried in the newly created RigaBrothers' Cemetery.
After the great offensive of 1915, the front line stabilized along the Daugava river until the Russian army started to collapse in early 1917. In February 1917Revolution broke out in Russia and in the summer the Russian army collapsed. By this time the Riflemen had overwhelmingly transferred their allegiances to the Bolsheviks.[13] The followingGerman offensive was successful and on September 3, 1917, they entered Riga.
In November 1917, the CommunistBolsheviks took power in Russia. Even though ethnic Latvians had become important assets in the task of securing Soviet power military (with the first ever commander-in-chief of the Red Army being LatvianJukums Vācietis)[13] the Bolshevik government tried to end the war and in March 1918, theTreaty of Brest-Litovsk was signed which gave Courland and Livland Governorate to the Germans, who quickly established occupational regime which lasted until November 11, 1918. During this time Germans tried to create theUnited Baltic Duchy in perpetual union with the Crown of Prussia.
A survey in 1920 established that 56,7% of parishes had war damages. Population had decreased from 2,55 million to 1,59 million. The number of ethnic Latvians has never again reached the 1914 levels. 87,700 buildings were destroyed. 27% of the arable land laid in waste. Much of the industry was evacuated to Russia and lost forever. Ports were damaged by sunken ships, bridges blown up and railways damaged. 25,000 farms were destroyed, 70,000 horses, 170,000 cattle lost.[16]
Iskolat flagFlag of the Republic of Latvia.Valka Town Hall, where December 2, 1917 Declaration of Autonomy was issued. NowValga in Estonia.DukeAdolf Friedrich of MecklenburgWinnig's note of November 26, 1918British Navy ships in Liepāja port, December 1918Soviet offensive, 1918–1919May 1, 1919 celebrations in Soviet RigaSoviet Latvia's 5 ruble noteLocal counteroffensives, 1919–1920
The course of World War I, which directly involved Latvians and Latvian territory, fostered the idea of Latvian statehood. During the summer of 1915 theGerman army conquered Kurzeme and Zemgale, leading to an exodus of Latvians from these two provinces. Local politicians gained experience organizing refugee relief and Latvian refugee cultural life. Caught between the attacking Germans and incompetent Russians,Latvian riflemen (latviešu strēlnieki) fought on the Russian side during this war and became increasingly radicalized after repeated setbacks under tsarist generals. During theRussian Civil War of 1917-1923 a significant group (known asRed riflemen) fought for theBolsheviks. Meanwhile, German-Empire and local Baltic Germans planned to annex the ancient Livonian and Estonian lands to the German state. During the chaotic period of Russian and German empire collapses, theFebruary Revolution of March 1917, the Bolshevik revolution of November 1917, theSoviet westward offensive of 1918–19 and the onset of the Russian Civil War, Latvians made various efforts to establish a local government. Not all of these efforts aimed at establishing an independent state or even a Latvian state.
After theFebruary Revolution in theRussian Empire, a majority of Latvians did not expect more for their country than a federated status in a Russian state. "Free Latvia in Free Russia" was the slogan of the day. During March 12–13, 1917 inValmiera the Vidzeme Land Congress took place, which set up the Provisional Land Council of Vidzeme. Courland was occupied by Germans, who increasingly supported idea of creating a puppetDuchy of Courland and Semigallia in order to annex it to Germany.Latgalian-inhabited counties of theVitebsk Governorate were demanding unity with other Latvian provinces (unification of Latgalian Latvians and Baltic Latvians), which came only after the Bolshevik revolution.
On July 5, 1917, theRussian Provisional Government recognized the elected Land councils of Vidzeme and Kurzeme. Encouraged by the liberalism of the Provisional Government, Latvians put forward proposals which envisioned a broad local autonomy. On August 12, 1917, Latvian organizations jointly asked the Provisional Government in Petrograd for autonomy and self-determination. During a Congress from August 11–12 (July 29–30, Old Style) in Riga, the left-wing Social Democrats, heavily influenced by the Bolsheviks, established theIskolat government - named for the "Executive Committee of the Council of Workers, Soldiers and Landless Deputies of Latvia" (Russian:Исполнительный комитет совета рабочих, солдатских и безземельных депутатов Латвии,romanized: Ispolnitel'nyj komitet rabochikh, soldatskikh i bezzemel'niykh deputatov Latvii).
When the German Army occupied Riga on September 3, 1917, Iskolat retreated toVidzeme, where it assumed executive powers. The so-called Iskolat Republic existed from November 21, 1917, until March 3, 1918. Under German attacks it evacuated toCēsis, then toValka. It disbanded in March 1918 after theBrest-Litovsk treaty of March 3, 1918 assigned the Latvian lands (exceptLatgale) to Germany.
In German-occupied Riga, after a preliminary meeting on September 14, on September 23, 1917, the Latvian Social Democratic party, together with theLatvian Farmers' Union and some smaller republican and socialist parties, formed the Democratic Bloc, which petitionedOber Ost for the restoration of an elected Riga City Council, the re-opening of schools, and press freedoms. The Democratic Bloc was not a formal organization, but a coalition of politicians who shared similar political goals.
Latvian Social Democrats used their old contacts with theGerman Social Democrat Party to directly lobby politicians in Berlin. On October 19, 1918, Democratic Bloc representatives delivered a petition to the German Imperial chancellorPrince Maximilian of Baden, in which they asked for the removal of occupational forces, the release of POWs, and recognition of an independent Latvian state.
In October 1917 centrist politicians met inPetrograd and agreed to create a united council of all Latvian parties, refugee-support organizations and soldiers' committees. On November 29, 1917, theLatvian Provisional National Council was established inValka. On December 2, 1917, it proclaimed Latvia's autonomy in Latvian-inhabited lands and declared itself the only representative organ of Latvians. The council announced three main goals – convening of a Constitutional Assembly, creation of political autonomy and uniting of all ethnic Latvian-inhabited lands.
The National Council, under the chairmanship ofVoldemārs Zāmuēls, sent a delegation - led by the future Minister of Foreign AffairsZigfrīds Anna Meierovics - to theAllied countries to get their support for an independent Latvia.
The Provisional National Council operated in the same place and at the same time as the Bolshevik-controlled Iskolat – in the small city of Valka, which is situated on the border between ethnic Estonian and ethnic Latvian lands, and which for a couple of months was the virtual capital of the Latvians. Iskolat moved to ban the Provisional Council in December 1917.
On January 5, 1918, during the only meeting of the democratically electedConstituent Assembly of Russia (subsequently dissolved by Bolsheviks), Latvian deputyJānis Goldmanis, the initiator in 1915 of the formation of the Latvian Riflemen units, read a declaration of separation of Latvia from Russia.
At its second meeting, which took place in Petrograd, the Latvian National Council on January 30, 1918, declared that Latvia should be an independent, democratic republic, uniting the Latvian regions of Kurzeme (which includes Zemgale), Vidzeme and Latgale.
On March 3, 1918Soviet Russia signed the treaty of Brest-Litovsk with theCentral Powers. In terms of the treaty Russia gave up Kurzeme and Vidzeme (but not Latgale). The National Council protested against the splitting of Latvian lands and the annexation of Kurzeme by Germany.
Despite these diplomatic successes, the National Council had a major problem: the Social Democrats and the Democratic Bloc refused to join it. This prevented the creation of a truly national consensus for proclaiming independence. This disunity came to an end only on November 17, 1918, when thePeople's Council (Tautas padome) was created.
On November 26, 1918, the new GeneralPlenipotentiary of GermanyAugust Winnig recognized theLatvian Provisional Government which the People's Council had established on November 18. On November 28 the Regency Council of the United Baltic Duchy disbanded itself.
After the German collapse on November 9, the National Council and the Democratic Bloc began unification talks. Social Democrats insisted that the new Latvia should be a socialistic state, which other parties found unacceptable. The Social Democrats also refused to join the National Council, instead insisting on creating a new unity organization. The unification talks were led by Farmers' Union leaders Kārlis Ulmanis andMiķelis Valters, while National Council leadersVoldemārs Zāmuēls,Arveds Bergs andĀdolfs Klīve were sidelined.[18]
The left wing of the Latvian Social Democrats had become allied with the Bolsheviks, and during its conference of November 18–19, 1918 proclaimed the Latvian commune a part of theRussian Soviet Federation.
On December 1, 1918Soviet Russia invaded Latvia.Much of the invading army in Latvia consisted ofRed Latvian Riflemen, which made the invasion easier. The Soviet offensive met little resistance, coming just a few weeks after the collapse of the German Empire and the proclamation of an independent Latvia. The Social Democratic party at this point decided to leave the People's Council - it rejoined it only in April 1918. On December 17, 1918, the Provisional government of Workers and Peasants, led by the veteran left-wing politicianPēteris Stučka proclaimed Soviet rule. On December 18Lenin officially recognized the new Soviet Latvia.
The Soviet Army captured Riga on January 3, 1919. By the end of January the Provisional Government and the remaining German units had retreated all the way toLiepāja, but then the Red offensive stalled along theVenta river. TheLatvian Socialist Soviet Republic was officially proclaimed on January 13 with the political, economic, and military backing of Soviet Russia. Stučka established a radical communist régime of nationalizations, expropriations and executions of class enemies. Revolutionary tribunals were established, condemning to death German nobles, pastors, and wealthy traders - as well as peasants who refused to surrender their grain: in total some 1000 people were executed. Due to food-supply disruptions, 8590 people starved to death in Riga.
On March 3, 1919German and Latvian forces commenced a counterattack against the forces of Soviet Latvia.On April 16 theBaltic nobility organized acoup d'état in Liepāja and a puppet government under theleadership ofAndrievs Niedra (in office from 26 April 1919) was established - it lasted for just two months. The provisional national government took refuge aboard the steamshipSaratov under British protectionin Liepaja harbour.[19]On May 22, 1919, the GermanFreikorps under the overall command of the German Major-GeneralRüdiger von der Goltz recaptured Riga, and the White Terror against any suspected Soviet sympathizers began. At the same time the Estonian Army (including the North Latvian Brigade loyal to the Latvian Provisional Government headed by Ulmanis) started a major offensive against the Soviets in north Latvia. By the middle of June Soviet rule was reduced to Latgale.
In June 1919 collisions started between theBaltische Landeswehr on one side and theEstonian 3rd division (including the 2nd Cēsis regiment of the North Latvian brigade) on the other.[20] The 3rd division defeated the German forces in theBattle of Wenden on June 23. An armistice was signed at Strazdumuiža, under the terms of which the Germans had to leave Latvia.[20]
Instead the German forces were incorporated into theWest Russian Volunteer Army.[20] On October 5 it commenced an offensive on Riga, taking the west bank of theDaugava River - the front line split Riga in half. On November 11 the Latvian counteroffensive began and by the end of the month the West Russian Volunteer Army was driven from Latvia. During battles in Riga, Latvian forces were supported by British naval artillery.
On January 3, 1920, the united Latvian and Polish forces launched an attack on the Soviet army in Latgale, and in theBattle of Daugavpils liberatedDaugavpils by January 5. By the end of January they reached the ethnographic border of Latvia, and peace negotiations with the Soviets soon began.
During the 1919Paris Peace conference Latvia had unsuccessfully lobbied for internationalde jure recognition of its independence by the Allied countries. The Allies still hoped for a quick end of the Bolshevik regime in Moscow and the establishment of a democratic Russian state which would grant Latvia a large degree of autonomy. The internal situation also was unstable, as during 1919 three different governments (Latvians, Germans-White Russians, and Soviets) were fighting for control.
According to Latvian diplomats, during that time the US and France opposed recognizing Latvia; Italy and Japan supported the idea; while the United Kingdom gave limited support and waited for events to play out.
On August 11, 1920, according to the terms of theLatvian–Soviet Peace Treaty,Soviet Russia relinquished authority over the Latvian nation and its claims to Latvian territory:
"Russia recognizes without objection the independence and sovereignty of the Latvian State and forever renounces all sovereign rights held by Russia in relation to the Latvian nation and land on the basis of the previous State legal regime as well as any international agreements, all of which lose their force and effect for all future time as herein provided. The Latvian nation and land shall have no obligations arising from their previous possession by Russia."[21]
In 1920 Latvia, together with Lithuania and Estonia, applied to join theLeague of Nations but was denied membership at that time.
As the Soviet victory in theRussian Civil War became clear and after heavy lobbying by the Latvian Foreign MinisterZigfrīds Anna Meierovics, the AlliedSupreme War Council, which includedUnited Kingdom,France,Belgium,Italy andJapan, recognized Latvia's independence on January 26, 1921.[22] Recognition from many other countries soon followed. Latvia became a member of theLeague of Nations on September 22, 1921. The US recognized Latvia only in July 1922. Before 1940, a total of 42 countries recognized Latvia.[23]
After Latgale was finally liberated from the Soviets in January 1920, elections to theConstitutional Assembly of Latvia took place on April 17–18, 1920. While the population of Latvia had fallen by almost a million, from 2,552,000 to 1,596,000 in 1920 (in Riga from 520,000 to 225,000), 50 party-lists and candidates competed for 150 seats. Close to 85% of eligible voters participated in the elections, and 16 parties were elected. TheSocial Democratic Workers' Party won 57 seats, theFarmers' Union 26, and the Latgalian Peasant Party 17. This voting pattern marked all the future parliaments – a high number of parties representing small interest-groups required the formation of unstable coalition governments. While the largest single party, the Social Democrats, held the post ofSpeaker of the Saeima, they avoided participating in governments. Between 1922 and 1934 Latvia had 13 governments and 9Prime Ministers.
On February 15, 1922, theConstitution of Latvia and in June the new Law on Elections were passed, opening the way to electing the parliament – theSaeima.
The Latvian-Soviet peace treaty had set the eastern border between Latvia and Soviet Russia. After 1944 the Soviet Union annexed parts ofAbrene District as thePytalovsky District of theRSFSR. Latvia gave up all legal claims to these lands in 2007.
During 1919 Estonia had provided military assistance to Latvia on the condition that some of its territorial claims inVidzeme would be met. The Latvians refused, and Estonia withdrew its support. Estonian claims centered onValka district as well as territories inApe,Veclaicene,Ipiķi andLode. On March 22, 1920, Estonia and Latvia agreed to a settlement commission led by British colonelStephen Tallents. Latvia retainedAinaži parish, and most of other contested lands, but lost most ofValka city (nowValga, Estonia). The issue of the ethnically Swedish-inhabitedRuhnu island in theGulf of Riga was left for both countries to decide. Latvia finally renounced all claims on Ruhnu island after signing a military alliance with Estonia on November 1, 1923.[24]
Latvia proposed to retain the southern border of the former Courland governorate with Lithuania unchanged, but the Lithuanians wanted to gain access to the sea, as at this time they did not control the German lands ofKlaipėda. In September 1919, during an attack against the Soviets, the Lithuanian army occupied much ofIlūkste Municipality and threatened to takeDaugavpils as well. Between late August and early September 1920 the Latvian army pushed the Lithuanians out.[25] The Lithuanians, weakened byŻeligowski's Mutiny of October 1920, did not escalate this confrontation. On September 25, 1920, Latvia and Lithuania agreed to have an international arbitration committee led byJames Young Simpson settle this dispute. In March 1921, Lithuania was given the port townPalanga, the village ofŠventoji, parts ofRucava Municipality and the railroad junction ofMažeikiai on Riga – Jelgava – Liepāja railroad line, which meant that Latvia had to build a new railway line. Latvia received the town ofAknīste and some smaller territories in theAknīste Municipality,Ukri parish andBauska Municipality. Latvia gave up 283,3 square km, while receiving 290 km2. About 16 to 20 thousand ethnic Latvians thus became Lithuanian citizens.
As a result of thePolish–Soviet War of 1918–1921, Poland secured a 105 km long border with Latvia. In July 1919 Poland announced its annexation of all lands south ofDaugavpils and their inclusion inBraslaw district. Latvia could not complain, as it still needed Polish military help prior to the decisiveBattle of Daugavpils of January 1920 against the Soviets. The issue was solved by a renewed Soviet attack against Poland, and later, by Polish-Lithuanian conflict over Vilnius. During the Soviet attack in July 1920, Polish forces retreated from this area, which Latvian forces then occupied. AfterŻeligowski's Mutiny Poland wanted to have good diplomatic relations with Latvia and did not raise any serious territorial claims. The issue was solved in February 1929, when Latvia and Poland signed a trade treaty which included a secret agreement about compensation to Polish landowners for lost properties. By 1937 Latvia had paid the full amount of 5 million golden lats.[26] Over some protests from Lithuania, the Latvian-Polish border was demarcated between 1933 and 1938.
Independent Latvia's earliest foreign-policy goals involved securing peace with Soviet Russia and with Germany, gaining international recognition, and joining theLeague of Nations. All this was achieved by the efforts ofZigfrīds Anna Meierovics.
Hopes for the union of Baltic countries – Poland, Lithuania, Latvia, Estonia, and Finland – faded after 1922. After that Latvia was the most energetic proponent of Baltic unity andBaltic Entente. On November 1, 1923, Latvia and Estonia signed a military alliance, followed by trade agreements. Latvia tried to maintain good relations with the regional hegemons - Soviet Russia and Germany - and hoped for more support from Great Britain. Foreign governments opened 21 embassies and 45 consulates in Latvia by 1928; some of these consulates were located in the port cities Liepāja and Ventspils.
Latvia purchased embassy buildings in Berlin (1922), Tallinn, Warsaw (1923), London (1925), Paris (1927), and Geneva (1938).[27]
TheSocial Democratic Workers' Party, as the largest party, held the position of theSpeaker of the Saeima in all the interwar Saeimas. The1st Saeima was chaired byFrīdrihs Veismanis, the Second, Third and Fourth Saeimas were chaired byPauls Kalniņš. The refusal of the Social Democrats to participate in governments (except twice in short-lived cabinets) meant that government was usually led by the center-right Farmers' Union, or by a coalition of smaller parties, as the Saeima seats were divided among many parties, each with just a few MPs.
The Social Democrats were split between the main Social Democratic Workers' Party led by Pauls Kalniņš,Ansis Rudevics andFricis Menders (which first won 30 seats but had a tendency to lose votes in subsequent elections) and the splinterSocial Democrat Minority Party led byMarģers Skujenieks, who were more centrist and managed even to lead governments on two occasions. The mainstream Social Democrat party maintained a strong policy ofSocialist International ideals and criticized the existingcapitalist system. The Party avoided using the State flag and singing the National anthem, instead using theRed flag and singing the"Internationale" in their meetings. Their popularity increasingly fell, and in the4th Saeima they had only 21 seats.
Officially banned, theCommunist Party of Latvia in the1928 elections managed to get 5 seats standing as the Left Trade Union (which was banned in 1930). In the1931 elections Communists won 6 seats as the Trade Union Workers and Peasants Group, but were once again banned in 1933.
TheLatvian Farmers' Union, comprising the second-largest parliamentary faction with 14 to 17 MPs, was the largest of the conservative parties. It increasingly had to compete with some smaller farmer, catholic-farmer andLatgale-farmer parties which won more votes in each election. The Farmer's Union was led byKārlis Ulmanis,Zigfrīds Anna Meierovics andHugo Celmiņš. The decreasing popularity of Ulmanis and of the Farmers' Union may have been one of the reasons behind the May 15,1934 Latvian coup d'état, as Ulmanis tried to prevent further loss of his political influence and power in the elections scheduled for October 1934.
The Democratic Centre Party, led byGustavs Zemgals represented mostly urban, middle-class office-workers and state employees.
Most of the remaining small parties were either ethnic – German, Jewish, or Polish – or represented single-issue economic groups – small-holders, house owners, even railroad workers. The small parties usually formed larger coalitions (blocks) and then used their influence to join governing coalition. One of the most influential was coalition of Latgale parties.[28]
During this time four referendums took place, all indicative of the issues facing the new state.
On July 19, 1922, Latvia signed aConcordat with theVatican. This was motivated by the need to better integrate the heavily Catholic Latgale in the Lutheran-dominated state. In traditionally Lutheran Riga some buildings belonging to Russian Orthodox Church were given to Catholics, and the LutheranSt. James's Cathedral was transferred to Catholics as their new cathedral. On September 1–2, 1923 theChurch property referendum was held in an attempt to prevent any further forcible transfer of churches and properties from one confession to another. About 200,000 or 20% of voters participated, and the referendum failed.
On June 2, 1927, the Saeima once again changed the Citizenship law. An earlier version had granted Latvian citizenship to anyone who had lived in Latvia for 20 years before August 1, 1914 (at the start of World War I). The new law shortened the period of eligibility to 6 months before August 1, 1914. This mainly aimed to allow many Latvian farming colonists, who now were fleeing Soviet Russia, to receive citizenship. However, this also meant that many Soviet Jews now could claim Latvian citizenship. On December 17–18, 1927 theLatvian citizenship referendum was held to prevent the proposed changes, but it failed, as only 250,000 or 20% of voters participated.
The Concordat with the Vatican occasioned anotherchurch-property referendum in 1931. When the St. James's Cathedral was given to Catholics, Latvian Lutherans lost their bishop's cathedral and were sharing theRiga Cathedral with the Baltic German congregation, which belonged to the autonomous German Lutheran confession. Anti-German sentiment was widespread and an initiative to give Riga Cathedral to Latvian Lutherans gained strength. On September 5–6, 1931 almost 400,000 voters supported this idea, but the referendum failed, as it did not gather over 50% of votes. In any case, the Saeima soon passed a law confiscating the church from the Germans and giving it to the Latvians.
On February 24–25, 1934 theInsurance Law referendum took place, aiming to introduce a new old-age- and unemployment-benefit scheme which would be funded by taxing employers, higher-wage earners and municipalities. The referendum was initiated by Social Democrats, who managed to get over 400,000 votes for this idea, but the referendum failed.[29]
The young Latvian state had to deal with two main economic issues: the restoration of industrial plants (especially in Riga), and the implementation ofland reform that would transfer most of the land from German nobles to Latvian farmers.
The Constituent Assembly passed a land-reform law which expropriated manor lands. Landowners were left with 50 hectares each, and their land was distributed to the landless peasants without cost. In 1897, 61.2% of the rural population had been landless; by 1936, that percentage had reduced to 18%. The extent of cultivated land surpassed the pre-war level as early as 1923.[30]
Before the World War I some 2% of landowners owned 53% of land in Kurzeme and Vidzeme, in Latgale it was 38%. The Agrarian reform Law of September 16, 1920 created the State Land Fund, which took over 61% of all land. The German nobles were left with no more than 50 ha of land. This destroyed their manor-house system. Many of them sold their possessions and left for Germany. Former manor-house buildings often became local schools, administrative buildings or hospitals. The land was distributed to a new class of small-holding farmers – over 54,000Jaunsaimnieki (New farmers) with an average farm-size of 17.1 ha, who usually had to establish their farms from nothing, in the process building new houses and clearing fields. Due to their small size of their holdings and unfavorable grain-prices, the new farmers rapidly developed dairy farming. Butter, bacon and eggs became new export industries. Flax and state-owned forests were other export-revenue sources.[16]
On March 27, 1919, the Latvian Provisional Government introduced theLatvian ruble, with an exchange rate of 1 Latvian ruble equal to 1Ostrubel, 2 German marks and 1.5 tsarist ruble. On March 18, 1920, the Latvian ruble became the only legal currency. Due to high inflation, the newLatvian lats was introduced in 1922 at a rate of one lats to 50 rubles. In 1923 theBank of Latvia was established and the lats replaced the ruble entirely in 1925.
Between 1923 and 1930 the state budget ran surpluses. On average, 25.5% went to defense, 11.2% to education and 23.4% to capital-investment projects. The state'sspirits monopoly generated around 15% of government income.
The restoration of industry proved complicated. Before World War I, 80% of industrial production went to internal (Russian Empire) markets. Latvia signed a trade agreement with the Soviet Union in 1927, but this did not result in high trade-volumes. By the end of the 1920s Latvia's largest export markets were Germany (35.6%), the United Kingdom (20.8%), France, Belgium, Netherlands (22.9%). Latvia had to import almost all its modern machinery and fuels.[16]
In 1929 Latvia had threestate-owned banks, 19 private banks, 605 credit unions and many more mutual credit unions.
TheGreat Depression reached Latvia in the middle of 1930. Exports fell and imports were strictly limited, to save foreign exchange reserves. State monopolies of sugar and bacon were created. To prevent banks from collapse, between July 31, 1931, and September 1, 1933, a law prohibited withdrawal of more than 5% of the total deposit per week. In 1932 the trade agreement with Soviet Union expired and industrial unemployment reached its peak in January 1932. The national income fell from 600 latsper capita in 1930 to 390 latsper capita in 1932.
In place of free international trade came interstate clearing-agreements which set the volumes and types of goods that states then would trade. In 1932 Latvia signed clearing agreements with France and Germany, in 1934 with the United Kingdom, in 1935 with Sweden, Estonia and Lithuania.
Economic recovery started in 1933 as production increased by some 30%. The state budget deficit fell from the record 24.2 million lats in 1931/32 to 7.8 million lats in the 1933/34 budget.[16]
On the night from May 15 to 16, 1934 the Prime MinisterKārlis Ulmanis and Minister of WarJānis Balodis, fathers of Latvian independence, took power by a bloodless coup d'état. Parliament and Constitution were suspended, State of War introduced, all political parties banned and press censorship established. Members of thePērkonkrusts,Latvian Social Democratic Workers' Party, pro-Nazi activists from theBaltic German community, and other leaders from the extreme right and left were detained. Certain extremist political figures such asGustavs Celmiņš were sentenced to imprisonment.
Just as in politics, in economy, the new Ulmanis regime was very active in increasing state control and planning mechanisms. In 1934 regime created the Chamber of Trade and Industry was established, followed by the Chamber of Agriculture and the Chamber of Artisans in 1935 and the Chamber of Labour in 1936. The state helped bankrupt farmers by postponing bankruptcy auctions and refinanced their debt at a lower rate. On May 29, 1934, the state took control over cooperative societies and associations. The dairy industry was placed under the control of the Central Union of Dairy Farmers.[16]
On April 9, 1935, a state controlled Credit Bank of Latvia was created which reduced the role of foreign capital by creating many state owned industry monopolies and joint stock companies. Buyouts and liquidations of foreign, Baltic German and Jewish owned companies become a norm. In place of many competing companies large state owned companies were created. In 1939 the state owned 38 such companies. The new JSC Vairogs produced railway carriages andFord-Vairogs automobiles under the Ford licence.VEF made world's smallestMinox cameras and such experimental aircraft asVEF JDA-10M,VEF I-12 and others. Between 1936 and 1939 theĶegums Hydroelectric Power Station, with 70,000 kWh capacity largest in the Baltics, was built by Swedish companies.
After Western countries abandoned the gold standard, the Latvian lats was pegged to the British pound in September 1936. It was a devaluation that further strengthened Latvian exports. By 1939, following an export boom propelled primarily by agricultural goods, Latvia was the richest of the Baltic countries, and had a GDP per capita higher than Finland or Austria.[13]
However, the recovery from the Great Depression took almost ten years. National income was 444 lats per capita in 1933 and reached 637 lats per capita in 1938, thus finally overtaking the 1929 levels.[16]
After the start of World War II Latvia declared complete neutrality, but it was now completely cut off from the market of United Kingdom, as Germany had sealed off the Baltic sea. Austerity was introduced on September 3, 1939. The politically disastrous October 5, 1939Soviet–Latvian Mutual Assistance Treaty provided new export and import opportunities. On October 18, 1939, a new trade agreement was signed with the Soviet Union. Latvia exported its food products in return receiving oil, fuel and chemicals. On December 15, 1939, a new trade agreement was also signed with the Nazi Germany.
Latvian farmers had traditionally relied on seasonal farmworkers from Poland, this was now cut off by the war, and in spring 1940 new regulations introduced compulsory work service for state employees, students and school pupils.
In October 1936 Latvia was elected as non-permanent member of the Council of theLeague of Nations and retained this place for three years. In 1935 embassy in Washington was re-opened, which later served as important center forLatvian Diplomatic Service during 50 years of Soviet occupation.
After theMunich Agreement demonstrated the failure of collective security system, Latvia on December 13, 1938, proclaimed absolute neutrality. On March 28, 1939, Soviet Union without any discussions announced that it is interested in maintaining and defending Latvia's independence. On June 7, 1939, Latvia and Germany signed non-aggression treaty.
According to the 1939Molotov–Ribbentrop Pact "the Baltic States (Finland, Estonia, Latvia, Lithuania)" were divided into German and Soviet "spheres of influence" (German copy)
The Soviet Union prepared for Soviet annexation of Baltic countries with the signing of theMolotov–Ribbentrop Pact between theSoviet Union andNazi Germany on August 23, 1939. Under threat of invasion,[note 1] Latvia (along with Estonia and Lithuania) signed theSoviet–Latvian Mutual Assistance Treaty withSoviet Union, providing for the stationing of up to 25,000 Soviet troops on Latvian soil. Following the initiative from Nazi Germany, Latvia on October 30, 1939, concluded an agreement to "repatriate" ethnic Germans, most of whom had lived in the region for generations, in the wake of the impending Soviet takeover.
Seven months later, the Soviet foreign ministerVyacheslav Molotov accused the Baltic states of conspiracy against the Soviet Union. On June 16, 1940, threatening an invasion,[note 2] Soviet Union issued an ultimatum demanding that the government be replaced and that an unlimited number of Soviet troops be admitted.[33] Knowing that the Red Army had entered Lithuania a day before, that its troops were massed along the eastern border and mindful of the Soviet military bases in Western Latvia, the government acceded to the demands, and Soviet troops occupied the country on June 17. Staged elections were held July 14–15, 1940, and the results were announced in Moscow 12 hours before the polls closed; Soviet documents show the election results were forged. The newly elected "People's Assembly" declared Latvia a Socialist Soviet Republic and applied for admission into theSoviet Union on July 21. Latvia was incorporated into theSoviet Union on August 5, 1940.Latvian diplomatic service continued to function in exile while the republic was under the Soviet control.
In the spring of 1941, the Soviet central government began planning the mass deportation of anti-Soviet elements from the occupied Baltic states. In preparation, GeneralIvan Serov, DeputyPeople's Commissar of Public Security of the Soviet Union, signed theSerov Instructions, "Regarding the Procedure for Carrying out the Deportation of Anti-Soviet Elements from Lithuania, Latvia, and Estonia." During the night of June 13–14, 1941, 15,424 inhabitants of Latvia — including 1,771 Jews and 742ethnic Russians — were deported tocamps andspecial settlements, mostly inSiberia.[34] 35,000 people were deported in the first year of Soviet occupation (131,500 across the Baltics).
The Nazi invasion, launched a week later, cut short immediate plans to deport several hundred thousand more from the Baltics. Nazi troops occupied Riga on July 1, 1941. Immediately after the installation ofGerman authority, a process of eliminating theJewish andGypsy population began, with many killings taking place inRumbula. The killings were committed by theEinsatzgruppe A, theWehrmacht and Marines (inLiepāja), as well as by Latvian collaborators, including the 500–1500 members of the infamousArajs Commando (which alone killed around 26,000 Jews) and the 2000 or more Latvian members of theSD.[35][36] By the end of 1941 almost the entire Jewish population was killed or placed in theconcentration camps. In addition, some 25,000 Jews were brought from Germany, Austria and the present-day Czech Republic, of whom around 20,000 were killed. The Holocaust claimed approximately 85,000 lives in Latvia,[35] the vast majority of whom were Jews.
A large number of Latvians resisted the German occupation. The resistance movement was divided between the pro-independence units under theLatvian Central Council and the pro-Soviet units under theLatvian Partisan Movement Headquarters (Латвийский штаб партизанского движения) inMoscow. Their Latvian commander wasArturs Sproģis. The Nazis planned to Germanise the Baltics after the war.[35] In 1943 and 1944two divisions ofWaffen-SS were formed from Latvian conscripts and volunteers to help Germany against theRed Army.
In 1944, when the Soviet military advances reached the area heavy fighting took place in Latvia between German and Soviet troops, which ended with another German defeat. Riga was re-captured by the Soviet Red Army on October 13, 1944, while theCourland Pocket held out until May 9, 1945. During the course of the war, both occupying forces conscripted Latvians into their armies, in this way increasing the loss of the nation's "live resources". In 1944, part of the Latvian territory once more came under Soviet control andLatvian national partisans began their fight against another occupier – theSoviet Union. 160,000 Latvian inhabitants took refuge from the Soviet army by fleeing to Germany and Sweden.On the other side, many Latvians who had previously supported Bolshevism had chosen to remain in Soviet Russia, where they wielded disproportionate influence in the party.[13]
On March 5, 1953Joseph Stalin died and was succeeded byNikita Khrushchev. The period known as theKhrushchev Thaw began, but attempts by the national communists led byEduards Berklavs to gain a degree of autonomy for the republic and protect the rapidly deteriorating position of theLatvian language were not successful. In 1959, after Krushchev's visit to Latvia, national communists were stripped of their posts and Berklavs was deported to Russia.
Because Latvia had still maintained a well-developed infrastructure and educated specialists it was decided in Moscow that some of the Soviet Union's most advanced manufacturing factories were to be based in Latvia. New industry was created in Latvia, including a majormachinery factory RAF inJelgava, electrotechnical factories inRiga, chemical factories inDaugavpils,Valmiera andOlaine, as well as food and oil processing plants.[37] However, there were not enough people to operate the newly built factories. In order to expand industrial production, more immigrants from other Soviet republics were transferred into the country, noticeably decreasing the proportion of ethnic Latvians.
By 1989, the ethnic Latvians comprised about 52% of the population (1,387,757), compared to a pre-war proportion of 77% (1,467,035). In 2005 there were 1,357,099 ethnicLatvians, showing a real decrease in the titular population. Proportionately, however, the titular nation already comprises approximately 60% of the total population of Latvia (2,375,000).[citation needed]
Subsequent steps toward full independence were taken on May 4, 1990. TheLatvian SSRSupreme Council, elected in the first democratic elections since the 1930s, adopted adeclaration restoring independence that included a transition period between autonomy within the Soviet Union and full independence. In January 1991, however, pro-communist political forces attempted to restore Soviet power with the use of force. Latvian demonstrators managed to stop the Soviet troops from re-occupying strategic positions (January 1991 events in Latvia). On August 21, after the unsuccessful attempt at acoup d'état in Moscow, parliament voted for an end to the transition period, thus restoring Latvia's pre-war independence. On September 6, 1991, Latvian independence was once again recognized by theSoviet Union.
At the end of 1999 inHelsinki, the heads of the European Union governments invited Latvia to begin negotiations regarding accession to the European Union. In 2004, Latvia's most important foreign policy goals, membership of the European Union and NATO, were fulfilled. On April 2, Latvia became a member of NATO[38] and on May 1, Latvia, along with the other two Baltic States, became a member of the European Union.[39] Around 67% had voted in favor of EU membership in a September 2003referendum with turnout at 72.5%.[40] Latvia signed theSchengen agreement on 16 April 2003 and started its implementation on 21 December 2007.[41] In November 2013,roof collapsed at a shopping center in Riga, causing Latvia's worst post-independence disaster with the deaths of 54 rush hour shoppers and rescue personnel.[42] On 1 January 2014, Latvia joined theeurozone, becoming a member of the group of EU states which uses theeuro as its currency.[43]
^Soviet-Latvian negotiations started on October 2, 1939 and on the following day Latvia's Minister of Foreign AffairsVilhelms Munters informed his government that Josif Stalin had said that "as for the Germans, [there is no obstacle], we can occupy you" and threatened that the USSR could also seize "territory with a Russian minority."[31]
^and presenting the ultimatum and accusations of violation by Latvia of the terms of mutual assistance treaty of 1939, Molotov issued an overt threat to "take action" to secure compliance with the terms of ultimatum – see report of Latvian Chargé d'affaires, Fricis Kociņš, regarding the talks with soviet Foreign Commissar Molotov.[32]
^Elmārs Pelkaus, ed. (2001).Aizvestie: 1941. gada 14. jūnijā (in Latvian, English, and Russian). Riga: Latvijas Valsts arhīvs; Nordik.ISBN9984-675-55-6.OCLC52264782.
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