Agricultural and food industries constitute a significant part in the economy of European Union (EU), thus providing 15 million jobs and creating 4.4% of the gross domestic product. EU Common Agricultural Policy (CAP) is adopted in all 27 member states and a significant part of budget is allocated to implement it - in 2008 it was 58.8 billion EUR or 44.5% of the total budget. This research performed the analysis of the theoretical, historical and economic aspects of the CAP. Eight main stages of the reform can be distinguished in the CAP development. They have their own characteristics, goals and main support tools. The process of the CAP reform has not been finished yet.

In this study the development of meat sector in terms of livestock population, production, farm size and reproductive material, which forms economic basis for effective meat production was analysed. The aim of the study was to investigate main tendencies of meat production sector and development of economic basis in Latvian agriculture. To achieve the set aim following objectives were defined: 1) to analyse concentration and specialization processes of pig breeding farms; 2) to describe restructuring processes of reproductive pig breeding; 3) to investigate restructuring processes of farms producing beef; 4) to characterize concentration and integration processes in poultry production. The study was based on annual statistical data and statistical bulletins covering results of the Farm Structure Survey from 2001 to 2006, scientific publications, special literature and reports of international organizations. To carry out the research adequate research methods were used. The results of this study showed that meat industry has structurally changed in recent years, where the structural change can be defined as the change in the number and size of farms in pig, cattle and poultry sectors. The results also suggested that meat production sector in Latvia has become more intensive, concentrating meat production in large and specialized farms, where this tendency can stimulate the increase of meat production. Therefore, knowledge of the current tendencies and strategies of pig, cattle and poultry sectors is a necessary precondition for the development of the meat sector.

It has been shown in previous studies that transaction costs (TC) of agri-environmental policy measures often are very large both in absolute terms and as a share of payments. As agri-environmental policy measures make up an increasingly large share of agricultural policies, not least within the European Union, it is becoming ever more important to improve the knowledge about the factors determining the level of transaction costs. This paper investigates the TC determinants of one Swedish agri-environmental policy measure. More specifically, it aims to investigate if the level of TC is attributable to economic factors, such as pasture density and distances, or if political factors, such as lobby groups and political majorities at the county level, influence the costs. To evaluate if the results are robust with respect to alterations in model specifications, a version of the extreme bounds analysis is applied. Although initial results indicate that political parties influence the level of transaction costs, the extreme bounds analysis reveals that those results are fragile. It shows that five of the economic variables are robust with respect to model specifications, but none of the political variables is.

The forests and woods are the main resources in Latvia. It is vital to understand the amount of wood resources that is being extracted from private forests now and in future in order to be able to predict the forest sector development and growth. The study objective was to identify the key factors in the wood resource availability and assess their role in private forests. In October 2009, the study was conducted to appraise the private forest owners the operational results and find out the future plans in connection to wood resource extraction. In the study a random sampling method was applied, where in the respondent selection the State Forest Service database information was used. In the study the respondent interviewing method CATI with computerized telephone interviews was used. In the selection of affecting factors the expert's method was applied. The study showed that only 25.40% of all private forest owners claimed that there was wood resources extraction in forests, but 29.50% of all private forest owners claimed that they were planning to perform the wood resource extraction in 2010. If the timber selling prices increased by more than 10 LVL per m3 in 2010, then 38% of all respondents claimed that they would increase the wood resource extraction in forests. The study data show that 30% of all private forest owners admit that there are growing stands in the forests, but they can’t be harvested, because road infrastructure is poorly developed or there are no roads in the forests.

At different points in the history there have been attempts to evaluate the volume and value of separate game-related goods and services in Latvia; however, so far there have been no comprehensive studies covering the role of the game management and its impact on Latvia’s economy. Such data would be necessary not only to evaluate the impact of the game management on Latvia’s economy, but also to set appropriate priorities in cases where game animals cause damage to other sectors of economy. In order to evaluate the role of the game management in the national economy, lists of the game-related goods and services have been drafted, sources of information have been identified to determine the volume and monetary value of the goods and services in the 2009/2010 hunting season, as well as a methodology has been developed to acquire the missing information. It has been determined that the total monetary value of the game-related products was 3.66 million LVL, while the game-related services accounted for 18.86 million LVL. The total contribution of the game management to Latvia’s economy in the 2009/2010 hunting season has been estimated at 22.52 million LVL. Among the game-related products the most significant product is the game meat total amount (sales and own consumption) of which has been estimated at 2.8 thousand tons, while total value accounted for 3.6 million LVL. Among the game-related services the most significant contributors are the following: sales of hunting equipment (6.7 million LVL) and game-related transportation costs (4.7 million LVL).

Smart specialisation strategy (RIS3) is topical for each European Union member state – including the Baltic States. It is a smart tool for the European Union (EU) Structural Funds absorption from 2014 to 2020. Each EU member state has set their own priorities based on the country specialisation and economy strengths and weaknesses. For RIS3 development evaluation, there is RIS3 Assessment Wheel developed – a tool for assessing the RIS3 in a chosen region and positioning it between other regions. The aim of research is to find main differences between RIS3 development in the Baltic States. The tasks of research are 1) to compare existing RIS3 Assessment Wheel of Latvia and create authors version of RIS3 Assessment Wheel of Latvia; 2) to create RIS3 Assessment Wheel of Lithuania and Estonia; 3) to make comparisons between created RIS3 Assessment Wheels. The research performed is mainly based on the desk research by using content analysis and the monographic method. In all three Baltic States, there is a lack of information available about revision of priorities in connection with RIS3 development. In order to achieve the aims set in RIS3, it is essential to finish work on RIS3 legislation in Latvia, and introduce the systematic approach to RIS3 target evaluation in all Baltic States.

After the private ownership of land was restored and a part of land reclamation structures was given to land owners, the intensity of land use has changed. In the areas of Lithuania, which are less favoured for agriculture, the land is not intensely used. Further financing of land reclamation of such areas from the state budget grants is economically inefficient as the return of relatively high investments is very low. With the changing of land reclamation infrastructure it is necessary to prepare measures which would facilitate rational, regional agricultural specialization corresponding to natural conditions. The routine procedure of financing the land reclamation has to be changed as well. The paper analyses the changes in usage of drained land areas and financing of the land reclamation sector in Lithuania during the last decade (1997-2007). The purpose of this research is to establish the criteria of the economical efficiency of drainage systems and to propose methods how to change the financing of state-owned land reclamation infrastructure. On the grounds of the carried out situation analysis, a methodology of distributing state grants for land reclamation to municipality budgets are presented. To have an efficient use of the state budget funds, the operation and maintenance of shared land reclamation systems have to be carried out according to the maintenance plans approved by municipalities, which would provide for arrangements and compensations due to conflict of interests arising when land plots are used in different ways. Possible ecological measures that could be applied when carrying out repair and reconstruction of drainage systems are discussed.

After the regaining of independence in Republic of Latvia, a new period in the structural-politics of national economy, in choice of enterprise forms and business companies, in their foundation and development began. Beginning from the regain of independence, there has been no published research on these issues for about 16 year period. All studies on this topic were dedicated to separate periods, processes or regions. In the Paper format results of original research have been expounded on the development of entrepreneurship content forms in four separate urban, strategic territories: Daugavpils or Southern-Latgale, Rezekne or Eastern-Latgale, Liepaja - Ventspils or Western-Kurzeme and Riga intra-regions. In the research the whole period since regaining of Latvia independence has been analyzed, as well as the adaption of the law package on entrepreneurship and the beginning of the real entrepreneurship activity in years 1991-1992. Substantial differences between the territories (agglomerations) and also conformities of common development have been defined. There are essential differences in the activity efficiency of entrepreneurship subjects and in the results of the work contributed. The urban influence of big cities increases. The subjects and components of logistics systems develop faster.

This article analyzes the experience of economic clustering of Finnish industry. This experience is described in the report of the fundamental investigation which was carried out by the Research Institute of the Finnish Economy (ETLA) - Advantage Finland - The Future of the Finnish industries. The study deals with the competitiveness and future growth prospects of the Finnish industry on the basis of Michael E. Porter's theory of the competitive advantage of nations. The comparative advantage of Finnish industries has been moving from capital-and resource-intensive branches to those driven by know-how and technology. The author recommends to study this experience and to use it in Latvia. The finding of the real and potential business-groups in the economy of Latvia may be realized with the algorithm of clustering described by the professor of Colombian University (USA) David Stark on the base of Lursoft data of the Latvian enterprises.

The scientific article is prepared using monographic research method. The most important works by several scientists are examined. The author analyses guidelines for strengthening of civil society within Decree of 2005 by the Cabinet of Latvia; previous research on social capital in scientists' works is considered and indicators regarding economics of Latvia are characterized; formal and informal social networks and their norms are cleared. Importance of civil society is suggested by the Cabinet Decree No. 98 Guidelines of Strengthening Policy for Civil Society in 2005. The guidelines and directions for strengthening of civil society for the ten years describe actuality of this program. This theme is less researched in Latvia. Civil society promotes democracy, increases and mobilizes social capital, coordinating collaboration of citizens for common benefit. Civil society in Latvia is in its initial position. The concept of social capital by different foreign scientists and Latvian specialists is analysed in this article. American scientist R. Putnam (1995) has written about social capital that human capital regards individuals but social capital regards relationships among individuals as well as social networks and exchange norms. Another researcher F. Fukuyama (1995) analyses social capital by comparison of economical development of different peoples and nations. Research by several scientists on indicators of social capital and their use in economics of Latvia are analysed in the work. The author concludes that social capital of Latvia has tendency to develop, and social networks and their expansion is little explored in Latvia.