The objective of the paper research is to assess the role of the implementation of the local development strategies (LDS) elaborated by the local action groups (LAGs) in the regional development and addressing social problems in Latvia. The paper examines the role and place of LDS in territorial development planning in Latvia, carries out thematic analysis of the projects implemented under the LDS as well as tries to assess the LEADER approach impact on regional development and addressing of social issues on the local level. The authors use unpublished data on LEADER projects and apply quantitative and qualitative analysis methods. Most of LEADER projects have been implemented to facilitate the development of infrastructure related to recreation and quality leisure time as well as culture and sports. Rural inhabitants have noticed positive changes in their local territory introduced by the LEADER approach. Though, in order to enhance the role of LAGs and LDS in addressing regional development and social problems at local level, it is advisable that the potential interaction of the activities provided by all regional planning documents is observed when determining priorities at regional level (presently the place and role of the LDS has not been formally defined), while implementation of the LDS should pay more attention to long-term effects and even accomplishment of target priorities.

Since 1990 significant structural changes have taken place in Latvia. First of all, it was the reestablishment of an independent state in 1991 and secondly - the accession to the European Union (EU) in 2004. Joining the EU provided free flow of goods, finances and individuals, a single system of legal acts as well as a trustful image of the state for foreign investors. In Latvia, 60% of the EU funds are allocated for agriculture and rural development, thus achieving the objective of producing food adequate for consumers’ purchasing power and ensuring agricultural commodities are available for their processing. Financial aid for primary industries also results in support for the whole society and other industries from which necessary resources and commodities are purchased. After joining the EU, the growth of the agricultural industry was observed owing to support payments. As a result of the EU policy, the size distribution of farms changed in Latvia, the output and exports of food increased as well as agricultural productivity rose. The research aim is to analyse the changes in and gains for Latvia’s agriculture after the accession to the EU. The following research methods were employed: the monographic and descriptive methods, analysis and synthesis and the logical and constructive methods.

The study deals with issues related to the impact of Natura 2000 sites on local development of rural communes in Poland. The purpose of the study is an attempt at comparing the level of social-economic development of rural communes in which Natura 2000 sites are located within their borders against other communes where there are no such sites, based on an analysis of selected indices. The selected indices of social-economic development were analysed in 424 rural communes in six Polish provinces. The study uses statistical data from the Central Statistical Office from the years 2000-2013. The analysis indicates that rural areas with Natura 2000 network sites do not differ from other units of local government as far as the level of social-economic development is concerned and in some cases show even better results. In the ‘Natura’ communes – compared to units where there are no such sites – the level of total income is higher, along with the commune’s own income, and there is a higher level of investment expenditure. The conducted analysis allows for the statement that the presence of Natura 2000 sites does not hinder economic development of communes and only modifies the manner of preparation and implementation of an investment. It does not constitute a barrier to human activity on the condition that any such activity complies with the principles of sustainable development. This testifies to the higher economic activity of inhabitants in comparison to other units.

This article presents analysis of the role of rural community in enhancement and implementation of changes in rural social infrastructure. Rural social infrastructure is a key part of rural social and economic system, the development level of which predetermines satisfaction of needs of rural residents, fulfilment of their range of choices and alternatives. The main objective of this article is to deploy the fact that application of “bottom-up” approach could stimulate rural community to make decision intended for promotion of positive changes when straining after the attractiveness of their locations through the rational development of social infrastructure facilities, supply of target, high-quality and multiple services. The following research question has been addressed – what is the potential contribution of rural community towards promotion of changes in social infrastructure of rural areas. The research aim is to disclose the role of rural community in enhancement of rural social infrastructure changes. An anonymous survey using questionnaire was implemented in five pilot rural areas and the summary of results is presented. It has been determined that activity and citizenship of rural community in assumption of liabilities for the wellbeing of all rural residents predefines the relevancy of their decisions and opinions before the local authorities and other concerned local or regional institutions. Consequently, the challenge for mentioned rural development actors is to identify or recognise the constraints on rural community participation in forming social infrastructure at local level, and to develop and enable specific initiatives in their favour.

One of the most challenging issues of EU agriculture is viability of farmers’ and family farms. These farms used to play a major role in new member states. However, the last decades are characterized by the significant decrease in the number of farmers’ farms. The paper deals with the issues of these farms’ viability and the role of support. A literature review on viability concept and indicators justify the selection of socio-economic viability criteria for the survey. The findings are based on the results of Lithuanian farmers’ opinion survey. The analysis of the selected socio-economic criteria of viability shows that crop production farms are characterized as the most viable. According to the survey results, the farms with less than 30 ha, and the farms operated by farmers aged 60 and older belong to the most vulnerable group. These farms are non-viable in the long-run. The risk estimation of staying in agricultural business if support is abolished for viable and non-viable farms shows dependence of farm’s behaviour and viability status.

rural tourism homestead choice in Lithuania. The aim of the research was to determine the balance between the importance and performance of factors affecting the choice of rural tourism homestead in Lithuania. The questionnaire research was provided in Lithuania in 2014. Tourists’ evaluations regarding five exogenous latent variables: ‘accommodation and catering’, ‘activities in destination’, ‘natural features’, ‘destination aesthetics’, and ‘environmental preservation’, and four endogenous latent variables: ‘destination marketing’, ‘perceived value’, ‘satisfaction’, and ‘loyalty’ were measured. The total effects for the specific endogenous constructs in the structural model (importance) and the average values of the latent variable scores, rescaled to a range of zero and 100 (performance) were measured to compose the importance performance grid. The research results indicate that the most important factors for tourists while choosing a rural tourism homestead in Lithuania are ‘destination marketing’, ‘environmental preservation’, ‘perceived value’ and ‘satisfaction’. Moreover, the highest share of the total investments allocated to satisfy tourists and enhance the level of loyalty should be accrued to the improvement of ‘destination marketing’ and ‘environmental preservation’.

With increasing competition between companies providing logistics services, a need for new services occurs, entire service packages are formed in order to retain customers. Logistics companies frequently have similar machinery and equipment, employees with similar professional qualifications; they also work in essentially identical economic environment. Investments to technical base are not enough in order to attract new users of logistics services or to retain existing users. In order to be profitable, companies providing logistics services try not only to satisfy the needs of users, but also to provide value for the services that would totally meet implied expectations of the users. When using the same service, different users may assess it completely differently. Therefore, one of the most important aspects in business activity of the companies providing logistics services is the creation of consumption value without the need for significant financial investments ensuring high-end performance. The objective of the research is to determine conditions presupposing the creation of consumption value of logistics services in agrarian sector upon analyzing theoretical assumptions of the creation of consumption value. The research was conducted in the Republic of Lithuania by interviewing executives of the companies providing different logistics services and operating in different regions. Main logistics service groups specific to agrarian sector are defined in the article, and conditions presupposing the creation of consumption value of logistics services are determined.

Innovative activity of small and medium-sized enterprises is one of the factors for effective business. The aim of the article is to determine the innovative activities of small and medium-sized businesses in the frontier regions of Latvia (Latgale region), Lithuania (Vilnius region, Alytus region, Utena region, Panevezys region, Kaunas region), Belarus (Vitebsk region, Grodno region, Minsk region, Mogilev region). The novelty of the research has a cognitive character: the authors have determined the level of innovation potential for small and medium-sized enterprises in the regions, which is characterized by a complex of various resources, the amount of the production of innovative product and innovative technology, service in the regions, the branch structure of innovations in the regions, dominance of certain models of innovative entrepreneurship on the basis of innovative process organization in the companies located in the frontier regions has been established. The following methods are used for the research: logical analysis and synthesis, monographic and analytical method for studying economic theoretical and empirical sources of the international level, quantitative and statistical methods of data processing – frequency analysis, sampling; for the collection of the initial primary data the instrument of questionnaire was used.

The purpose of the research is to evaluate the technologies, available to the Latvia’s sector of fish processing and their utilized capacity, as well as to identify the factors influencing production process, providing recommendations for development and improvement of further policy of the sector. The author evaluated availability and utilized capacity of production technologies in the Latvia’s sector of fish processing, considering the analysis of financial indicators of the made investments, production capacity load and fish processing companies. In view of economic theory, the factors, influencing the production process of Latvia’s sector of fish processing, were defined. As a result of analysis, the author established that the development of production of Latvia’s fish processing sector is to a great extent influenced by the availability of human resources, raw materials and investments, as well as undertaking. For further development and policy planning of the sector it would be advisable to take into account these factors, influencing the production process of Latvia’s sector of fish processing and their changes. The formed combinations of indicators may be used in scientific researches on establishment of production technologies availability and their utilized capacity, and identification of factors, influencing the production process; they may facilitate researches for its calculation and importance, as well as may assist the institutions involved in the fisheries’ policy formation to work more successfully and improve the common policy in the field.

This review paper discusses possibilities of the identification of local food products at brand features. Initially, it was examined whether the identification of food products is possible at brand features, after it was established what type of brand could be used for the identification of local food products – store brand or national brand. Local food meets both definitions: national brand products and store brand products. The scientific literature does not provide an answer to the question about the use of imported raw materials in manufacturing process of national level and store brand products. The answer is not provided if the food products, which contain imported raw materials, are considered to be local food. The methodology used for the research is based upon a literature review – a monographic method.