Latvia: a case Of paradigmatic misalignment

Existing debates around the emergence of the so-called 4th industrial Revolution in Europe tend to consider the interrelation between labour bargaining power and the digital infrastructure. Indeed, a number of Chapters in this volume explicitly build their analysis around these two factors. Latvia, in this respect, is an interesting case worth paying attention to. On the one hand, low degree of unionisation, strong business lobbying powers, and an above-average IT infrastructure relative to other EU member states, gives Latvia good odds to make decisive progress towards digitally revolutionising its economy on par with larger Western liberal capitalist countries. On the other hand, poor digital literacy of the population and indecisive digitalisation by businesses, compounded by a ‘blockbuster’ policy for digital innovation, makes it seem unlikely that Latvia will be able to undergo a 4th Industrial Revolution effectively. So where does this leave Latvia? Intent on becoming a regional entrepreneurship hub, Latvia is at risk of moving to a place where government policy and labour legislation begin moving into a digital economy with no one in it.