Final Report History of Social Welfare in Latvia 1900 - 1960

The final report on History of Social Welfare in Latvia 1900 – 1960 deals with the description of developments in social welfare system in Latvia throughout the first part of the 20th century. Complicated course of the European history and the one of Latvia made it impossible to describe the events and trends in social welfare sector alone without deeper glance at the historical developments of the country at the period mentioned. Due to that reason the report is organized in three parts each having two sections – Historical Background and Developments in Social Welfare. Each part deals with the characteristics of the particular time period in Latvia’s history, namely period from 1900 – 1920, from 1920 – 1940 and from 1940 – 1960. Reasons for dividing the complete time period under review into three two-decade periods are not intentional but rather historical. Up till 1920 we cannot speak of organized social welfare system in the country and independent social legislation in Latvia is considered to begin with 1920. Time period of 1920 – 1940 usually is referred in Latvian history as the period of the First Free State (Pirma brivvalsts) but 1940 marks several occupations of Latvia, loss of independence and life under occupation powers.

1.

History of Social Welfare 1900 - 1920

1.1

Historical background

At the beginning of the 20th century Latvia did not exist yet as an independent State. The territory of present-day Latvia was divided among a number of provinces that belonged to the Russian Empire. The Latvian people lived in the Russian provinces of Courland (Kurzeme), Livonia (Vidzeme) and Vitebsk. Vidzeme was annexed by Russia immediately after the Great Northern War in 1721. In 1722 Russia annexed the territory of Eastern Latvia (Latgale), which was added to the Russian province of Vitebsk. In 1795 the Duchy of Courland was also incorporated by Russia. German aristocracy, which had originally settled here in the 13th century, had traditionally made up the political and economic ruling class in this region. At the beginning of the 20th century the entire territory of present-day Latvia had

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belonged to Russia for barely more than a century. As opposed to other regions of Russia, this area was governed by a distinctly Western European lifestyle and mentality.

The turn of the 20th century in Latvia was marked by discussions about what the new century would actually bring. Latvian newspapers waited the new century in fear of revolutions, world war and also with hope that the new century may bring the world eternal peace and society may be freed of its great inherent contradictions. Some of these predictions turned out to be surprisingly precise.

In 1901 seven hundred years had passed since the foundation of the oldest Baltic medieval city Riga, and a large celebration was held to commemorate the occasion. Festivities lasted several months and attracted widespread international attention. The main component of the event became an exhibition of Baltic industrial goods and craftsmanship, which was intended to display the city's greatness. At the end of the 19th century and beginning of the 20th century the territory of present-day Latvia had become the most industrially developed part of the Russian Empire. This area also included Russia's most important Baltic ports – Riga and Liepaja. There was a particularly large concentration of industrial enterprises in Riga, which produced factory equipment, automobiles, railroad cars and building materials. The che mical, textile and food industries were also well developed. The population of Riga surpassed half million even before World War I. At the beginning of the 20th century the population of Latvian-inhabited territories reached two million, and approximately seventy percent of this population was Latvian.

New political undercurrents penetrated Latvian society at the end of the 19th century and became increasingly distinct at the beginning of the 20th century. During the second half of the 19th century society was marked by widespread national self-awareness – the process of national revival. In the final decade of the century Latvia was permeated by Marxism, which was propagated by the socialist movement "New Current" ("Jauna Strava"). The "New Current" is cons idered the predecessor to the Latvian Social Democrats. The movement's political activities were associated with protests against capitalistic exploitation, overall demands for democratization of the political establishment and belief in the victory of the proletariat, which would lead to general prosperity for the people. In concealment from official authorities, the Latvian Social Democratic Workers' Party (LSDWP) was founded in Riga in June of 1904. The newly founded party began to demand improvements in workers' social conditions and turned against the existing social order in the Russian Empire's Baltic provinces. The LSDWP was the first Latvian political party. 2

The constant constrictions of civic rights and freedoms in Russia, the unresolved agrarian issue, the privileges of the landed gentry and attempts to russify the Latvians were all causes that led to dissatisfaction among the Latvians with the social and political situation. January 13, 1905, the LSDWP declared a general strike. About 20,000 factory workers participated in a demonstration on the streets of Riga. A widespread movement took hold, and demands were made for improved social conditions and more political rights. In rural areas the movement was geared against the local aristocrats – the German landed gentry, who owned most of the land and who had usurped local power. Later in history books these 1905 events were entitled the "Latvian Revolution." During this revolution several nationally oriented Latvian Social Democrats publicly voiced for the first time the necessity to unite all Latvian- inhabited regions into an independent State – Latvia. This idea was especially popularized by the nationally oriented leading ideologue of the Social Democratic Union, Mikelis Valters (1874-1968), who opposed the disenfranchisement and undemocratic political order of the Russian Empire.

In 1914 the dissonance among Europe's great powers had escalated. August 1 marked the beginning of World War I. German troops invaded Latvian territory. By October 1915 German armed forces had occupied all of Kurzeme. Approximately two thirds of Kurzeme's inhabitants fled to the eastern part of Latvia, and later – to Russia. The first year of the war kindled a hitherto unseen wave of patriotism among the Latvian people. Immediately after Kurzeme came under German control Latvian social and political activists conceived the notion of founding Latvian military units in the Russian armed forces. For the remaining years of the war the Latvian Riflemen battalions, which later grew into regiments, were involved in military operations within Latvian territory and beyond.

The notion that the Latvian Riflemen would be fighting in the name of the Latvian people and for their future freedom had become widespread among the masses. The biggest and bloodiest battles for the Latvian Riflemen took place on the outskirts of Riga, on December 23, 1916 (Old Style). As the battles began shortly before Christmas, they have entered history as the "Battles of Christmas". During these battles the Latvian Riflemen displayed tremendous courage, which was widely reflected in the foreign press. The Latvian Riflemen had to pay a high price for their victories in these battles. One fifth of the Riflemen were wounded or dead. As it turned out later, the "Battles of Christmas" had no strategic significance, and this led the Latvian Riflemen increasingly to believe that the Russian command had sent them to their death consciously and with ill intent. 3

The outcome of the "Battles of Christmas" fostered the spread of revolutionary sentiments among the Riflemen. In 1917 the ideas of the leftist Social Democrats (Bolsheviks) concerning ending the war and dethroning the Russian tsar, thereby replacing him with the rule of the proletariat, became popular among the ranks of the Latvian Riflemen. The Latvian soldiers who were drafted in the Russian army were in favor of Bolshevik-propagated ideas concerning each nation's right to self-determination and plans for the establishment of general prosperity within the country.

Following the Bolshevik coup d'état on November 7, 1917, the leftist Latvian Riflemen, who were considered the trust worthiest members of the crumbling Russian army, became the personal bodyguards of the Bolshevik leader Vladimir Ulyanov (Lenin). Lenin was aware of the escalating national problems in Russia. His epithet for Russia, "prison of nations", has gone down in history. By promising them the highly-desired right to self-determination and freedom Lenin was able to successfully use the Latvians for his own purposes.

In the meanwhile, by September 1917 German forces had already captured Riga. Unable to achieve an agreement with Soviet Russia during peace talks, the Germans demonstrated their military superiority and occupied the remainder of Latvian territory in February of 1918. After the Russian-German peace treaty was signed on March 3 in Brestlitowsk, the civil and military authorities locally and in Berlin began to devise plans for ruling the occupied Baltic territory together with the local German landed gentry in Latvia. According to the Brestlitowsk treaty and its additional protocols, Germany was to keep Kurzeme and Vidzeme, while Latgale was to remain under Russian control. With this agreement the two superpowers split the Latvian nation, thereby completely ignoring the Latvian people's lawful right to self-determination.

During this time Latvian political parties had become increasingly active. In September 1917 in German-occupied Riga Latvian parties joined together in a coalition – the "Democratic Bloc". At the beginning of December in Valka (Northern Latvia) Latvian organizations had finished forming the Latvian Provisional National Council (LPNC), which at that point in time became the most extensive representative institution of the Latvian people. At the session on January 30, 1918, the LPNC decided to establish sovereign and democratic Latvia, which would encompass all Latvian- inhabited regions. The German occupation forces attempted to combat the defenders of Latvian independence. However, at this time Germany's internal political situation was becoming increasingly unstable. November 11, 1918, Germany was compelled to sign armistice, which brought an end to World War I. This was an 4

exceptionally good opportunity to realize the idea of Latvian independence. November 17, 1918, the LPNC and the "Democratic Bloc" agreed to jointly form a provisional parliament, the Latvian People's Council (LPC), which resolved to found an independent and democratic republic. On the following day, November 18, 1918, based upon the previous day's resolutions, the independent Republic of Latvia was proclaimed at a ceremonious meeting at the National Theatre in Riga. The lawyer Janis Cakste (1859-1927) was elected chairman of the LPC, and the agriculturist Karlis Ulmanis (1877-1942) became leader of the government.

Unfortunately, the end of the war did not bring long-awaited peace for Latvia. Since the end of 1918 the existence of the newly established government of independent Latvia was in threat of being attacked by the Russian Red Army, which also included the leftist or "red" Latvian Riflemen. Within a short span of time the Bolsheviks succeeded in conquering almost the entire territory of Latvia, thereby leaving only a small area around Liepaja under the control of the Ulmanis government. Under the leadership of Peteris Stucka (1865-1932) the Bolsheviks declared Soviet rule in the occupied territory of Latvia.

The government headed by Ulmanis rushed to form a national army in order to recapture the lost territory. In the meanwhile the position held by the Latvian government in Liepaja was becoming threatened by remaining German militarists and the local German landed gentry, who had established their own-armed formation (the Landeswehr). They deposed Ulmanis' gove rnment, which they considered anti-German, and created a marionette cabinet under the leadership of the pastor Andrievs Niedra (1872-1942). Headed by the local Germans and volunteers from the German army, this puppet government recaptured the capital Riga from the Bolsheviks in May of 1919.

After capturing Riga the German military and political leadership saw an opportunity to establish in Latvia a more German-oriented political regime and they turned their weapons against the Latvian national armed forces. Nevertheless, with help from the Estonians, the Latvian national armed forces gained victory over the Germans on June 23, 1919, in Cesis, and the Latvian- founded Ulmanis government was able to return to Riga. Still, German ambitions in Riga did not diminish. In the fall volunteers from the German army united under the leadership of the forces of the Russian adventurer Pavel Bermont-Avalov, whose intent was to renew the Russian Empire. As their first object of attack they saw independent Latvia. At the beginning of October 1919 Bermont-Avalov's troops attacked Riga. However, the Latvians thwarted the intrusion on the banks of the Daugava River, and by 5

November 11 the bermontians were driven out of Riga. By the end of November they had been expelled from Latvian territory.

1.2

Developments in Social Welfare

There are little available sources of information regarding social welfare in Latvia in the time period 1900 – 1920. Even the latest and most comprehensive to date historical study by the Institute of Latvian History, Latvian University that was published in 2000 “The 20th Century History of Latvia. Latvia From Beginning Of the Century To the Proclamation Of Independence” does not give any account of social welfare system in the country. Among the publications and studies concerning one or another aspect of social welfare should be mentioned Historical Development of Gerontological Social Work in Latvia by A. Abele (Riga: SDSPA “Attistiba”, 1999), History of Latvian Economy 1914 – 1945 by A. Aizsilnieks (Riga: Daugava, 1968), Social legislation by R. Akmentins (Riga, 1924), Handbook For Workers of Social Maintenance (Riga: Latvijas Pilsetu savieniba, 1934) The 20th Century History of Latvia. Vol. I - Latvia From Beginning Of the Century To the Proclamation Of Independence 1900 – 1918. (Riga: Latvijas vestures instituta apgads, 2000), The 20th Century History of Latvia. Vol. II – Independent State 1918 – 1940 (Riga: Latvijas vestures instituta apgads, 2003) and Latvian History. 20th Century (Riga: SIA J.L.V., 2005).

As mentioned above and in the historical studies due to the changing political situation and status of the country in the time period mentioned it is almost impossible to trace any major tendencies in social welfare sector in Latvia prior to the 1920. Frequently changing powers and subsequent World War I brought chaos to the social welfare system when several municipalities were following laws of the Russian Empire but others followed laws and regulations issued by the provisional government. At the same time it should be emphasized that numerous public organizations, societies and self- help institutions were organized and founded at that time that partly overtook responsibilities of the state in the field of social assistance and welfare. Even more – formation and development of these grassroot welfare organizations could be viewed as the starting point of the development of the civic society in Latvia as it demonstrated direct citizen’s initiative and involvement in solving growing welfare problems of the country while state was not capable of organized activities. Among numerous self- help and social assistance organizations and societies’ activities of four groups dominated in the time period under review – women societies, student societies, Jewish societies and 6

societies for disabled or handicapped persons including disabled soldiers. However it should be mentioned that women organizations and societies had the broadest spectrum of activities as they intersect with other fields of activities (shelters, soup kitchens, education for needy, sections in larger organizations etc.). Among the Women organizations three played the major role.

Aid Society “Women’s Work”

Society was registered in May 18, 1911. Its region of activities was Vidzeme province (Gubernia). Main activities concerned with organization of educational and special training courses, lectures, libraries, reading-rooms, improvement of women’s legal situation, moral support to women.

Annual Report of 1914 of the Society listed 347 members – 286 female and 61 male members. Report also named activities carried out by the Society – lectures, education, reading-rooms, soup kitchen.

Latvian Women Union

Statutes of the Union define the goal of the Union as follows: “To enter Constituent Assembly (Parliament) and to realize our program, to facilitate women’s participation in political and social life, to elaborate and to introduce new draft plans for the laws, to foster women’s collaboration”.

Member of the Union could be female or male aged 18 and over. Membership fee equaled at least 3,roubles a year, unpaid membership fee automatically led to expel.

Finances of the Union formed up from membership fees, donations, revenues from organization of lectures, courses, lotteries, concerts, interest rates, etc.

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Women’s Aid Corp Corp was established in September 22, 1919 and the Cabinet of Ministers certified Statutes of the Corp on May 26, 1920. Proposition to establish such organization was made by the President of the Ministers Karlis Ulmanis.

Goals of the organization were as follows: •

To relieve soldiers from the work in the back- line delegating that work to women;

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To assist in army’s supply and care;

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To take care of development of soldier’s spiritual life and their spare time;

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To provide material and moral support to the soldier’s families, orphans, disabled;

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To take care of the disabled and poor, children in need;

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To rise cultural level of the Corp’s members.

Corp organized tea-rooms, canteens, dressmaking atelier, laundries, libraries, reading-rooms, shelters for disabled, sport and playgrounds, bath-houses, concerts, publish books and periodicals.

Corp had a status of juridical person with its own seal. Finances of the organization were composed of membership fees, donations, revenues, real estate, loans, state benefits etc.

Member of the Corp could be only Latvian female citizen. Unpaid membership fee automatically led to expel from the Corp.

Corp had to co-ordinate its activities with the Defense Department and Army’s General Headquarters at all times – both during the war and peace-time.

Jewish organizations also played significant role in providing social assistance and help to the needy people all across Latvia. Though most of these organizations provided services on national basis activities of Jewish welfare organizations actually can be considered as the role model for the other Latvian societies at that time in organizing its members and provision of definite services. The following organizations can be considered as the most vivid examples.

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Poor Jew Patient Care Society “Bikur Cholim”

Established in 1870 in Riga and provided activities in the field of social assistance to the Jew patients up till 1920.

Liepaja Jew Women Society “Help”

Established in 1879, main field of activities – benefits and financial support. Finances of the Society were composed of membership fees, donations, interest rates. Annual Report of 1935 named 20 members.

Riga Jew Society of Cheap Canteens

First meeting in January 6, 1906 was attended by 250 people and raised 400,- roubles. Meeting also established membership fee of 1,20 roubles per year. Society was established in June 4, 1906 as a public organization. Annual Report of 1911 named 800 members.

Assistance Society for Poor Sick Jews of Liepaja

Established in October 26, 1905. Main goals of the Society were: •

To provide medical and financial support to poor and sick Jews in Liepaja city;

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To arrange hospital for poor jews;

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To provide medical and financial assistance through the doctors;

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To distribute benefits to Jews coming out of the hospitals.

Members of the Society could be only Jews excluding those under age of 18, soldiers, younkers and those whose liberties were limited by the Court.

Finances of the Society were composed of membership fees, revenues from real estate, organization of lectures and concerts, donations, public fund raising.

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Beginning from December 2, 1910 Society provided also free of charge medical treatment to the poor Jews.

Jew Philistine Society

Society was established in May 18, 1908 and it formed on the basis of informal group of academically educated Jews of Riga “Herrenabende”. 36 members were present on the first meeting of the Society; there were 239 members in 1933.

Main goals of the Society were to organize Assistance Fund for the needy philistines as well as to provide assistance for those that left Riga city. Society organized also loan-office for Jew students, members of the Society. During the WW I Society arranged Committee of Jew Ladies with an aim to help soldier families.

Society of Clothing for Poor “Malbis-Arumim”

Established in 1915 in Riga. Main activities of the Society were donation of clothes and dress, issue of credits and loans, support to the families of newborns. Society donated clothing to Jew seminaries, schools, disabled societies, kindergartens, shelters and private persons.

Liepaja Care Society for Sick Jews

Established in May 22, 1924. Its main goals were to provide healthy cheap or free of charge food to the poor Jews and to organize public tea-rooms and soup-kitchens. On April 17, 1939 Society was reorganized to “Liepaja Jew Soup Kitchen and Sick Support Society”.

Due to the World War I numerous societies for disabled people were organized in the middle of the second decade of the 20th century nevertheless Latvia already had a history of supportive societies for people with different kinds of disabilities. Among the most active the following organizations should be mentioned. As these organizations will not be specifically addressed in the further report organizations founded after 1920 also are mentioned.

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Tabora Agency at Jelgava

Agency was established in May 22, 1987 as private charity organization. Founders were Convocation of Lutheran Ministers (Sinode) of Kurland and noblesse of Kurland.

Agency’s main goal was to provide physical and mental care for epileptics, insane people and people with dementia. By the year 1902 it was transformed to Psychiatric hospital with more than 200 patients. Hospital built house for elder incurable people, had a children shelter, school for sick children, church, cemetery as well as workrooms for patients. All principals and care workers were Lutherans.

Baltic Blind People Assistance Society “Philanthropy”

Society was established in February 28, 1908. Its main goal was to provide assistance to the blind and visually impaired people, especially children and under-age disregarding nationality and religion.

Society provided medical help, food, job training and assistance in finding a job. It also had a shelter for children aged 8 and over where school lessons were provided.

Finances of the Society were composed of membership fees, revenues from real estate, theatre plays, donations, trade of goods produced at the shelter.

Deaf and Blind People General Society

Registered in May 19, 1920. Society’s main goals were to facilitate spiritual and educational development of its members, to help with the advice and practically to rise member’s spiritual and material values.

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Latvian Disabled Soldier’s Union

Established in 1917 with the support of the Army General Janis Balodis, registered in March 17, 1920. Union had regional branches all over Latvia, number of members in 1930 was 4824, in 1932 – 5000. Main goals of the Union were: •

To unite voluntary all disabled soldiers of Latvia facilitating their material and spiritual welfare;

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To provide assistance in finding a suitable job;

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To provide medical assistance;

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To provide with the housing, shelters and recreational facilities;

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To advocate interests of disabled soldiers in municipalities;

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To provide legal support and advice;

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To provide educational courses and training;

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To organize credit-savings bank.

Union study living and monitor living conditions of the disabled soldiers, publish different publications, organize concerts, lotteries, shows, lectures, rise money.

Members of the Union were soldiers disabled in the war actions as well as those who were disabled working for the defense of the country.

Finances of the Union were composed of state and municipal subsidies, revenues from organized activities, membership fees, donations, loans, interest rate.

Latvian Disabled Worker’s Society

Registered as a non-profit organization in December 21, 1927. Its main goal was to unite all disabled citizen workers to promote their material and spiritual development as well as to support and advocate their interests in all possible ways.

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Society provided assistance in finding a suitable job, provided food, organized workshops, organized benefit, medical treatment, funeral funds, funded cooperatives, credit-savings banks, shelters, recreational centers, organized educational courses and libraries, and published different publications.

Vidzeme Deaf and Blind People Society

Registered in August 21, 1929 as non-profit organization. Its main goal was to facilitate collaboration and self- help among the members for the spiritual development of the deaf and blind.

Society organized lectures, discussions, courses, concerts, lotteries, and excursions. It also had sport, chess and dramatic art sections, library, reading rooms.

Latvian Deaf People Society

Society was registered in August 22, 1938. Its main goal was to organize Society’s members, facilitate their spiritual development, organize lectures and courses, promote social life and physical development, to provide help to poor members of the Society.

Among other social welfare organizations student organizations played distinct role. As in many countries student corporations spread rapidly and mainly were organized by gender principle as more or less closed student gathering clubs. Nevertheless some of those corporations exceeded the scope of just entertaining activities and provided assistance to the needy members and their families that could e described as a social assistance.

Corporation “Lettonia” Student’s Help and Philistine’s Mutual Support Society

Established in Terbata city (current Tartu, Estonia) in 1881 by 30 students. Society’s main goals were to provide financial support to the poor students for studies, to provide financial support for further education, to provide relief in case of funerals a.o. needs, to promote national, cultural and other ideas.

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Society ended its activities in 1915 and in 1920 it was renamed to Corporation “Lettonia” Philistine’s Help Society and it was registered in March 16, 1921. This Society organized also Lettonia’s Philistine Ladies Help Committee (est. year to be specified) which in 1939 had 244 female members. Committee established three funds: Widows Fund, Fellowship Fund, and Funeral Fund.

Old Member Help Society “Ataugas”

Registered in February 2, 1924. Its main goals were to unite old members of the student’s union “Ataugas”, to provide benefits, to provide financial study support for the poor students, to facilitate cultural work. Society’s finances were composed of membership fees, revenues from real estate, loans. In 1938 Society had 108 members.

Corporation’s “Selonija” Help Society

Society was established in 1890 in Jelgava city with an aim to provide financial support to Corporation’s members. Later Society provided help also to the poor philistine’s families and supports in cases of funeral. In 1915 Society had 172 members, in 1939 – 273 members. Society had Ladies Section, Musical Section and Sport Section.

2.

History of Social Welfare 1920 - 1940

2.1

Historical background

At the beginning of 1920 Bolshevik armed forces were forced out from the area around Latvia's eastern border. August 11, 1920, Latvia signed a peace treaty with Soviet Russia, in which Russia acknowledged Latvia's sovereignty and willfully declined from claims to Latvian territory for all times. Peace, for which Latvia had waited so long, had finally descended, and the work of building a new nation could begin. Deeply disillusioned in the Bolshevik totalitarian regime, Latvian refugees who had

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fled to Russia during the war continued to return to Latvia until 1927. Repatriates included Latvian Riflemen and former non-supporters of Latvian independence – altogether more than 200,000 people.

January 26, 1921, the victors of World War I (Great Britain, France, Italy, Japan, or the so-called Supreme Council of the Allies) recognized Latvia's independence de jure. This was also a signal to other count ries to recognize Latvia's sovereignty. September 22, 1921, Latvia and the other two Baltic countries were admitted to the most prominent international organization of that time – the League of Nations. In the period between the world wars Latvia endeavored to pursue a neutral foreign policy, which was oriented toward close mutual co-operation between the Baltic countries and the League of Nations.

Once the situation stabilized and the country was liberated from foreign troops, the Constitutional Assembly was convened and on February 15, 1922, adopted the Constitution (Satversme) of the Republic of Latvia. From here on the Constitution prescribed the highest power in Latvia to the parliament, the Saeima, which was to elect the President and endorse the Cabinet of Ministers. Janis Cakste was elected first President of Latvia. The most influential political parties in Latvia after the war were the LSDWP and the civic-oriented Latvian Farmers' Union. The national minorities in Latvia (Germans, Jews, and Russians ) were also actively involved in political processes.

One of the most important tasks now was the revival of the economy, which had suffered tremendously during the war. The Latvian national monetary unit, the Lats, which replaced the short- lived Latvian Rouble, was issued in 1922. That same year the State began to implement the Agrarian Reform, which called for the division of State property and land that had once been held by the German landed gentry. Agrarian changes averted social tension in the country by making land available to former landless peasants and small farmers. This was a return to historic justice, as now the land belonged to those who actually lived on and farmed the land. Within a short time span the number of farms doubled. Latvian agriculture was able to fully supply the country with food and also opened wide possibilities for the export of agricultural products (butter, bacon, flax, etc.). Agriculture was the largest sector of the economy and employed two thirds of the work force.

Latvian industry rapidly came back to life and was oriented chiefly toward food production, textile manufacturing and timber processing. The electronic sector developed in the 1930s. Latvia's largest electronics factory "VEF" manufactured modern radios, cameras and even airplanes. In the second half 15

of the 1930s Latvia began to produce automobiles and trucks. With the help of foreign investment Latvia built a modern high- voltage hydroelectric power plant.

In the 1930s Latvia achieved one of the highest standards of living in Europe. The country adopted a progressive social insurance system. Already in the 1920s Latvia became known in the world as a country that takes special care of national minority rights. With government financial support Latvia's national minorities created their own autonomous school system.

In the beginning of the 1930s the worldwide economic crisis did not leave Latvia unscathed. The global crisis created political and economic tension in Latvian society. More radically inclined political circles were toying with the thought that under these circumstances the constitutionally defined parliamentary principle was not sufficiently effective. The Latvian Farmers' Union began drafting a bill to amend the Constitution, although the changes received no support from the other political parties. A coup d'etat took place on May 15, 1934. The parliament (Saeima) was dismissed and the activities of the political parties were suspended. Power was seized by the prime minister and member of the Latvian Farmers' Union Karlis Ulmanis (who was also the leader of Latvia's first government). By then similar coups had already taken place in the majority of the European countries, including the other two Baltic countries – Lithuania (December 1926) and Estonia (March 1934).

Due to increased prosperity during the second half of the 1930s, there was no loud public outcry against the authoritarian rule of Karlis Ulmanis, although the political parties that had now gone underground were devising plans to bring back a parliamentarian democracy. During this time the international state of affairs had become increasingly entangled and Latvia's national security was weakening. The League of Nations demonstrated its inability to ward off international conflicts, and Germany was becoming more powerful. The German National Socialist leader Adolph Hitler had been plotting undefined plans to annex the Baltic territory to the Third Reich. The USSR and its communist dictator Iosif Dzhugashvili (Stalin) were also scheming to get the Baltic countries under their control. The interests of Moscow and Berlin intersected in the Baltic States and momentarily united these incongruous ideological opponents. August 23, 1939, the Soviet Union and German Third Reich signed a treaty of non-aggression, which contained a secret protocol concerning the division of Eastern Europe in spheres of influence. The treaty is usually referred to as the "Molotov-Ribbentrop Pact", according to the two statesmen who signed it. As a result of this treaty and other documents that were later signed between Moscow and Berlin, Latvia and the other Baltic countries became part of the Soviet sphere of 16

interests. The August 23 treaty provided Germany with a chance to commence aggressions against Poland on September 1, which gave rise to World War II, while the Soviet Union found an opportunity to subdue the Baltic States.

After the proclamation of the independent State of Latvia on November 18, 1918, its higher state administrative body - the Provisional Government of Latvia - was established. The initial formation of the Provisional Government lasted until December 2, during which the institution ensuring the work of the Provisional Government of Latvia - the State Chancellery - was formed. Director of the State Chancellery, Mr. Davids Rudzitis, took his office on November 20. Afterwards, Mr. Davids Rudzitis wrote in his memories, "There was no background as to formation of divisions: the Ministers and Director of the State Chancellery bought office supplies at their own expense and it was not clear at the beginning how to remunerate the employees". The first official Governmental meeting, the process of which was minuted by Director of the State Chancellery, took place on November 26. This date shall be regarded the foundatio n day of the State Chancellery.

In spring 1919, the Cabinet of Ministers approved the register of the State Chancellery, consisting of 20 employees. The Cabinet of Ministers defined this to be the maximal number, and temporarily the civil servants were no minated according to the requirements, strictly observing the real amount of work. On August 5, 1919 the Government issued the Provisional Rules of the State Chancellery approved by the Cabinet of Ministers.

The four chapters contained the composition and structure, the tasks of the State Chancellery, the status of the official newspaper "Latvijas Vestnesis" (Latvian Herald) and the collection of legislative acts and orders of the Provisional Government of Latvia. The Cabinet of Ministers consists of the State Chancellery, headed by its Director, who is recommended by the Prime Minister and approved by the Cabinet of Ministers. The State Chancellery may consist of divisions and subdivisions according to requirements. The State Chancellery has two main tasks - to manage the writing and filing the documents of the Cabinet of Ministers and the Prime Minister as well as to control separate branches of the State Chancellery: filing the legislative acts, issuing the official newspaper, managing the printing house, the library and archive. The Division for Processing of Legislation functions at the State Chancellery with the purpose to inform about the adopted legislative acts of general significance as well as to evaluate the draft legislative acts submitted to the Government for adoption in conformity

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with the existing legislation. The assessment of documents was handed over to the Ministry of Justice in 1920.

On August 8, 1919 the Procedure Rules of Meetings of the Cabinet of Ministers was issued, and 25 short articles defined the order of the Cabinet of Ministers concerning the calling, managing, voting at the meetings and keeping the minutes of the meetings. The State Chancellery calls the meetings at the request of the Prime Minister, and all the Ministers participate in them having a decisive voice. The Acting Ministers and specialists may participate in the meetings having voting rights in the capacity of adviser.

The law on “The Structure of the Cabinet of Ministers”, taking effect on April 1, 1925, specifying that the Cabinet of Ministers consists of the State Chancellery, headed by its Director, had defined the status of the State Chancellery. Director of the State Chancellery and other civil servants were contracted in accordance with the Law on Civil Service, taking effect in 1920. The State Chancellery managed filing the documents of the Cabinet of Ministers and the Prime Minister, and Director of the State Chancellery was the account manager of the Cabinet of Ministers and the State Chancellery. Law on "The Structure of the Cabinet of Ministers", 1925 established 9 ministries - Ministry of Foreign Affairs, Ministry of Finances, Ministry of Home Affairs, Ministry of Education, Ministry of War, Ministry of Agriculture, Ministry of Communications, Ministry of National Welfare and Ministry of Justice. Two more ministries were established after May 15, 1934 – Ministry of Public Affairs and Ministry of Trade and Industry.

Officially, the State Chancellery finished its activities on August 27, 1940 when it was renamed as the Council of People's Commissars. In fact it is the time when the independent Government finished existing.

2.2

Developments in Social Welfare

Late in 1918, the National Council adopted a Temporary Law on Self-Governments (Municipalities), which formed the base of first social legislation. The Temporary Law assigned to the self- governments the task to care for persons who needed social assistance according to their places of residence.

18

In December 1918, the foundation of Social Department was started.

In July 1919, the responsibilities of Social Department comprised such tasks as labor protection, labor conflicts, care for disabled war veterans, social care and supervision of labor market, etc.

In 1920, Social Department was transformed into Ministry of Labor. During further operation of the Ministry of Labor, the Department of Social Care and Pensions was created. Also the Social Department with its departments of Labor Protection, Social Insurance, and Disabled Veteran Care was attached to Ministry of Labor, which until that was in the structure of Ministry of Interior Affairs.

On December 15, 1920, Constitutional Assembly of Latvia adopted amendments to the former Law of Russia on Provision to Workers in Case of Sickness. This Law was imposed to all paid employees, with exception of those employed in agriculture and sailors of high sea vessels. The insurance was mandatory and performed by Sickness Funds, which were managed by institutions elected by the insured persons themselves. Employees and employers made contributions to sickness funds in equal parts, and the state paid equal amount as the insured. The first sickness funds were established in late 1920, nevertheless the most of sickness funds of Latvia were established a year or two later.

Early 1921, a new department of the Ministry of Labor was formed the task of which was to supervise and implement the provision of medical assistance to all state officials and clerks (except those of railways). In 1922, the Department of Public Works was founded, the competence of which included the addressing of unemployment issues.

With the idea of development of health protection, the Kurzeme Medical Management was established on March 6, 1919 in Liepaja at the Ministry of Interior Affairs. Its tasks comprised the care and protection of national health in the country. Later, the Kurzeme Medical Management was transformed to the Department of Health.

Sanitary supervision and issues of hygiene and sanitation were responsibility of district physicians and their assistants. In Liepaja a City Physician was appointed, and Riga was divided into three precincts, in each of which one court police doctor was appointed. The main tasks of these physicians were abatement and control of contagious diseases, supervision over the health condition of population of

19

the precinct, court medicine duties, supervision of pharmacies, sale of medicine, as well as supervision over midwifes.

During the first years of existence of the country, the utmost attention of Department of Health was directed to abatement of acute contagious diseases, the most widespread of which were epidemic and relapsing typhus, as well as sexually transitive diseases.

Early in 1919, the Management of Pharmacies of Department of Health (since October 1923 Management of Pharmaceutics) started its operation in Liepaja. The task of Management of Pharmacies was to bring order into the work of pharmacies and the market of medicine, which was destroyed during the war. The operating pharmacies lacked medicine, non-quality medicine and trading with narcotics was considered to be a widespread reality.

In the spring of 1920, the Department of Labor Protection was established, which overtook also the tasks of Inspection of Factories. Labor inspectors supervised the observance of laws of labor protection, and partially those of social insurance.

On April 1, 1925, the Health Department was attached to the Ministry of Labor, and renamed to the Ministry of National Welfare, comprising three departments: Department of Labor Protection, Department of Social Care, and Department of Health.

In 1927, the Saeima adopted the Law on Insurance of Paid Employees in Cases of Emergency and Professional Sicknesses, which was considered to be one of the most modern social insurance laws to the date. During this period, also Regulations of Collective Employment Contracts (similar to German “Tarifvertrag”) were passed, regulating the relations between employers and employees.

On April 28, 1931, the Saeima, establishing that Ministry of National Welfare supervises social care, pensions, labor protection, social insurance, and care and protection of national health, adopted the Law on Ministry of National Welfare.

Cabinet of Ministers adopted Law on Insurance Fund of Life’s Evening in 1938 providing accumulation of funds for provision of the population for old age days.

20

During the period of Free State of Latvia (1920s-1940s), twelve Ministers occupied the position of Minister of National Welfare (Labor): •

Fridrihs Ozolins (12.06.1920. -18.12.1920.)

•

Pauls Mincs (19.12.1920.- 18.06.1921.)

•

Roberts Dukurs (19.06.1921.- 26.01.1923.)

•

Klavs Lorencs (27.01.1923.- 27.06. 1923.)

•

Gustavs Klaustins (28.06.1923.- 26.01.1924.)

•

Adams Krievins (27.01.1924 - 31.03.1925.)

•

Voldemars Salnais (01.04.1925.- 23.12.1925.)

•

Vladislavs Rubulis (24.12.1925.-18.12.1926.), (24.01.1928 - 16.03.1934.), (18.05. 1934 - 26.06.1937.)

•

Ansis Rudevics (19.12.1926 - 23.01.1928.)

•

Juris Paberzs (17.03.1934 - 15.05.1934.)

•

Hermanis Apsitis (27.06.-1937 - 31.12.1937.)

•

Janis Volonts (01.01.1938 - 20.06.1940.)

Independent social legislation in Latvia is considered to begin only during the time of Constitutional Assembly (Satversmes sapulce). In May 3, 1920 the Cabinet passed first social legislative act named “Order on labor protection and workers insurance”. This act laid foundation for the adaptation of Russia’s social laws for Latvia as new social institutions founded in Latvia differed greatly from those 21

in Russia. Considering the huge Russia’s territory it was necessary to have some social institutions in each province (gubernia) whereas in Latvia it was enough to have one central body in the capital Riga. The mentioned act founded Social Department at the Ministry of Interior Affairs which in the same year was reorganized and renamed to the Labor Ministry but in 1925 to Ministry of National Welfare.

During the period of first independence of Latvia legislator paid main attention to 3 fields of social legislation: labor protection, social insurance and provision, and social maintenance. Problems of the first two fields were on agenda of the Constitutional Assembly. First of all Constitutional Assembly tried to adapt to the Latvia’s situation Russia’s Regulations on insurance in the case of sickness. In amendments made in 1920 Constitutional Assembly expands the range of people under insurance, increases the amount of benefits and introduces the third payer – the state. The next year had lesser importance in the development of social legislation though during that period continued adaptation of Russia’s laws among which adaptation of “Regulations on provision of work” is considered to be the moast important.

The year 1922 which was the last year of activities of Constitutional Assembly had great importance in the development of social legislation that concerned problems of insurance in case of sickness. Amendments passed in 1920 in that field had gaps and misunderstandings rega rding the range of people that could be insured. These amendments declared that the “Law on insurance” is component part of the “Law on industrial work” and as the latter refers only to workers of the manual/physical work so only these workers can be insur ed. These misunderstandings were eliminated with the amendments of 1922. In the same year Constitutional Assembly passed the “Law on working hours” strictly defining 8-hour working day.

Insurance law and working hours law both are considered to be the most important social laws passed by the Constitutional Assembly. At that time it seemed that at least some social problems are settled but practice soon revealed imperfections of these laws. For example insurance law in the case of sickness provided very big income for the Sickness Insurance Fund (8 % from the average salary of the member of the Fund) that was the biggest among other European countries. This law also determined considerable state subsidies and also quite big benefits in the case of sickness (66 2/3 % - 100 %) but it didn’t incorporate the principles of modern social law of those days to give assistance regarding the definite conditions and situation of the needy or beneficiary. As it was reported in the annual meeting of the Union of sickness insurance funds only one Sickness insurance fund had established higher 22

benefit level for the people with families and as it was ironically remarked probably because most of the trustees of that fund were married. Working hour’s law also had some deficienc ies. Though it was considered to be very radical and strict it didn’t included any regulations regarding protection of women work and there was no prohibition of women’s night shifts – prohibition that most of Western European countries already realized by signing Bern Convention in 1906.

As much as there was necessity to transform and adapt former Russia’s laws there was necessity for new laws as well. And still from 1922 development of new social legislation was temporally stopped. Previously described la ws had divided Latvia’s society in two hostile communities. On the one hand there were members of society with social democratic sentiments and beliefs which were eager to develop and introduce new social legislative acts and did not want any limitations to the Law on insurance in the case of sickness and to the Law on working hours. Any amendment to those laws they view as attack on social democracy or even on all working class without entering into usefulness or uselessness of the amendment. On the other hand there are employers and bourgeois part of the society which required to narrow and limit existing laws and refused development of any new social laws. That was situation during the 1st Saeima (Parliament). Both sides refused to discuss social problems in substance and silently agreed to keep the status quo, which basically meant that bourgeois didn’t required any limitations to existing social laws and social democrats didn’t required any new social legislative acts. That is the main reason why during 1923 – 1926 legislators hadn’t passed any significant social laws though there were some minor changes and some international conventions adopted.

In 1927 Saeima passed one of the broadest social laws in Latvia – “Law on insurance of employees in cases of accidents and occupational illnesses”. Though more than 5 years had passed since last amendments of the insurance law legislators still were holding tight to the principles of quantitative reform: they broadened even more the range of persons under insurance and increased the amount of the benefits but individual conditions of insurant were left unnoticed. Nevertheless this law should be considered as a big step forward in the field of social legislation in Latvia as before that insurance in cases of accident was based on Russia’s laws (totally 8 laws) and amendments to them. Other important social legislative act that was passed in 1927 was “Regulations on collective work agreement” that laid foundation for the legal procedures of collective work agreement and social protection of employees. 23

Year 1928 started with discussions about the usefulness and functionality of the social insurance in Latvia. Until that time it was argued that sickness funds spend too much money and operate in unsuitable ways. Now also some insurance companies that were run by employers and that provided insurance in case of accidents were under attack (specifically The First Insurance society) as they were accused of having inappropriately high premiums and their managerial staff too big and ineffective. New developments paved way to the concept and system of social provision instead of insurance. This new approach recommended that previous advance payments and prepayments as well as insurance companies and institutions should be eliminated but assistance should be organized by the state and municipal institutions and agencies that should cover all or the most of expenses. As a matter of fact there was no significant change of principles – state already surcharged 25% in case of sickness or 50% in case of sea fishermen’s insurance. These discussions resulted in “Law on insurance of rural residents in case of sickness” (1928) that provided all rural residents with assistance in health care and the most expenses were covered by the state, then municipalities and finally the insurant also had to make some prepayments if he wanted to examine rights provided by this law.

“Law on social maintenance” was also passed in 1928. This law defined three groups of social maintenance. First group includes maintenance that is fully covered by the state. The second group includes maintenance whose expenses are covered by the state together with municipalities and the third group is covered completely by the municipalities. The following maintenance activities were included in the first group and covered fully by the state: 1. Maintenance of the needy whose citizenship and place of residence is not clarified or proved. 2. Maintenance of needy foreigners and Latvian citizens abroad. 3. Maintenance of orphans till the age of 17. 4. Treatment of leprous patients in state leprosarium. 5. Treatment of those with acute illness. 6. Treatment of those with rabies in Pasteur institute. 7. Treatment of needy persons with syphilis. 8. Treatment of needy with TB.

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The following maintenance activities were included in the second group and covered by the state and by the municipalities: 1. Maintenance of the deaf, mute and blind if it is necessary for their education and training. 2. Maintenance of the infants till 2 years of age in shelters run by Ministry of National Welfare. 3. Maintenance of the mentally, physically and morally disabled children till the age of 16 in special institutions. 4. Maintenance of the insane patients in special institutions

Regarding the maintenance activities included in the third group that are completely covered by municipalities the law doesn’t defined the definite cases but bound municipalities to provide maintenance in any cases if they are not mentioned in the first or second group. That meant that municipalities were obligated to provide social maintenance to any person that was admitted as needy and was not covered by the maintenance of the first or second group. Partly that was due to the significant number of municipalities in Latvia – 517 parishes and 60 cities (1935).

It should be mentioned that so called special social maintenance existed in Latvia that referred to disabled soldiers and their family members. From January 26, 1920 (“Law on pensions of soldier families”) till 1927 several laws and their amendments were passed regarding social maintenance of that group of population until the “Law on pensions of disabled soldiers and their family members” was passed in 1927 that defined 12 groups of disabled soldiers and / or their family members that were fully covered by social maintenance: 1. Latvian army soldiers. 2. Soldiers of other armies if they were Latvian citizens and have fight for Latvia’s liberation. 3. Soldiers of Russia’s or its allies armies if they were Latvian citizens and participated in the WW I (August 1, 1914 - March 3, 1918). 4. Disabled veterans of Russian – Japan war, Latvian citizens. 5. Persons requisited by Latvian army (contracted persons). 6. Partisans. 7. Aizsargi (Latvian quasi- military division). 8. Fighters for democratic republic. 9. Veterans of Russian – Turkish war, Latvian citizens. 10. Captors of criminals. 25

11. Soldiers of other armies if they had defected and came to Latvian army. 12. Family members of previously mentioned persons if they have died.

The following years saw no new significant social laws though again the re were amendments to the existing ones. In 1930 “Regulations on sickness funds” were passed that established the majority quota of fund members in the administrative board of the fund. These regulations also slightly decreased the amount of benefits to 60% - 90 % of the salary. Amendments to the “Law on insurance in case of accidents” on April 1, 1931 established full state responsibility for farmers and some other groups of employees in case of accidents. The following is the list of group of employees that were insured by state since April 1, 1931: 1. Farmers – independent and employed. 2. Fishermen and their family members. 3. Craftsmen and their family members. 4. Volunteer firemen. 5. Domestic servants. 6. Mental/intellectual workers as well as office staff, teachers and educators, employees of churches, theaters, social agencies a.o. 7. Thresher workers if they are not regarded as farmers. 8. Employed workers in cooperative dairy farms.

With these amendments The First Insurance society was liquidated and its functions were entered upon duties of the Ministry of National Welfare, specifically Department of insurance in cases of accidents and Medical department.

26

Number of insured in sickness funds in Latvia 1922 – 1934

Year

Members of

Family members

Total

sickness funds

(#)

(#)

(#) 1922

44 408

27 397

73 805

1923

76 140

63 382

139 522

1924

105 840

83 297

189 137

1925

120 898

90 646

211 544

1926

137 500

93 090

230 590

1927

148 288

97 232

245 520

1928

161 483

99 509

260 992

1929

171 195

106 550

277 745

1930

179 636

109 081

288 717

1931

168 208

106 701

274 908

1932

140 977

91 608

232 585

1933

149 722

96 073

245 795

1934

169 456

105 187

274 643

Table shows that the number of insured persons as well as number of dependent family members has permanently increased up till 1930 reaching the maximum number. Due to economic crisis in 1931 number of insurants decreases reaching minimal number in 1932 and after that with the improvement of economic situation in Latvia the number of insurants continues to increase.

In January 1, 1935 there were 38 sickness funds in Latvia, 18 in Riga and 20 in other cities and rural districts.

In 1931 Saeima passed “Law on pensions”. The second section of that law refers to the benefits to state employees in cases of disability, old age and death. It should be stressed that here we see that legislators had turned away from the principles of social provision as this law defines rather high insurance payments (up to 4% of salary).

27

There was no insurance in Latvia in cases of unemployment but it was considered to be one of the objectives of the state and municipalities to fight against unemployment. During the economic crisis in 1931 there were no possibilities to collect necessary funds to combat unemployment through collection of general taxes so in 1931 new law was passed “Law on provision of funds to combat unemployment”. The same law established Unemployment Combat Fund under the Ministry of national Welfare. This law provided that 5 groups are making payments to that Fund: 1. Employees. 2. Self-employed persons. 3. Employers. 4. Owners of real estate in the cities. 5. State.

Each group of payers had different payment rate and first 4 groups had different rate of payment within the group regarding the income level. State had no fixed payment rate and it had to be defined by necessity.

The law defined that assets of the Fund are special monetary assets for specific aim and there is no need to establish separate managing board for this Fund. In 1932 “Regulations on expenditure of assets of unemplo yment combat fund” were passed that clearly showed that this is not the case of insurance. Assets of the Fund were used to diminish or eliminate unemployment with the following activities: 1. Placement of work for unemployed (e.g. providing benefits and transportation money for those cities unemployed that were going to work in the country). 2. Organization of public community work and covering not only direct expenses of public work but also administrative expenses. 3. Providing health care and benefits to unemployed in cases of sickness or accidents. 4. Providing benefits to unemployed and their family members only in the cases of extreme necessity (poverty).

Basically this law was founded on different principles that any other social insurance law. In any insurance law necessary funds are being collected from persons and institutions directly or indirectly interested in insurance. In case of Unemployment Combat Fund funds are collected also from such groups which are not directly affected by the unemployment. That meant that legislators had adopted new principle of social legislation in Latvia – contribution to the resolution of social problems should 28

be viewed as a general responsibility and all socially and economically strong persons and institutions should be involved in the processes of the social problem solution.

In the time period from 1920 to 1940 Latvia signed and ratified number of international conventions in social welfare field. Selected of list of international conventions in social field ratified by Latvia follows.

1. On minor sailor’s mandatory medical examination (1924). 2. On farmer’s association rights (1924). 3. On minimal age of coal stokers on the sea (1924). 4. On week rest in industry (1924). 5. On 8 hour working day in industry (1925). 6. On employment of women before and after childbirth (1925). 7. On children’s minimal age in industrial labor (1925). 8. On minor’s night shifts in industrial labor (1925). 9. On children’s minimal age in shipping (1925). 10. On unemployment compensation in cases of ship wrack (1925). 11. On sailor’s provision of work (1925). 12. On compensation in cases of work accidents in industry (1928). 13. On equal management of compensations for foreign and native workers in cases of accidents (1928). 14. On compensation in cases of occupational sickness (1929). 15. On insurance in cases of sickness (1929). 16. On farmer’s compensation in cases of accidents (1929).

3.

History of Social Welfare 1940 - 1960

3.1

Historical background

On August 23, 1939, the Soviet Union and German Third Reich signed a treaty of non-aggression, which contained a secret protocol concerning the division of Eastern Europe in spheres of influence. The treaty is usually referred to as the "Molotov-Ribbentrop Pact", according to the two statesmen who 29

signed it. As a result of this criminal treaty and other documents that were later signed between Moscow and Berlin, Latvia and the other Baltic countries became part of the Soviet sphere of interests. The August 23 treaty provided Germany with a chance to commence aggressions against Poland on September 1, which gave rise to World War II, while the Soviet Union found an opportunity to subdue the Baltic States.

On October 5, 1939 Moscow presented Latvia with an ultimatum, thereby forcing Latvian statesmen to sign the so-called treaty of "mutual assistance", which called for the deployment of Soviet military bases in Latvia (a treaty of this nature had already been signed by Estonia on September 28 and by Lithuania on October 10). Approximately 30,000 Red Army soldiers (land forces) were garrisoned in ten army bases in Latvia, which was equivalent to the number of troops in the Latvian army at the time. In addition, ships from the Russian fleet were stationed in the ports of Ventspils and Liepaja. Now, number of foreign troops in Latvia exceeded the number of soldiers in the Latvian armed forces. Latvia found itself in a very difficult situation. The government's freedom to act was severely restricted and Latvia's independence was threatened. In response to an incentive from German Third Reich, more than 80% of Latvia's German minority (the Baltic Germans) moved to German territory at the end of 1939 and beginning of 1940. At that point in time, next to the Russians and the Jews, the Germans were the third largest national minority in Latvia, and made up more than 3% of the total population.

The Latvian government discerned a threat to its independence and empowered the Latvian Ambassador in London with special authority to represent the country in the case of lost sovereignty. May 1940 the Soviet press in Russia began to voice regular unsubstantiated accusations against the Baltic countries regarding alleged activities against Moscow. June 16, 1940, an authoritative memorandum was issued to Latvia by the Soviet Union, in which Latvia was reprimanded for not abiding by the "mutual assistance" treaty and forming an alliance between the Baltic States against Moscow. The memorandum also demanded the formation of a new government and for stationing of additional Soviet military units. The memorandum was a continuation of the Soviet Union's illicit actions against the Baltic countries, which began on August 23, 1939. This was an act of blatant interference in a sovereign country's internal affairs, and its goal was the dissolution of Latvia's independence. Unfortunately, Western countries showed no desire to assist the Baltic countries in their dismal fate. Latvia, Lithuania and Estonia were left under the dominance of Russia's aggressive tendencies. In an attempt to avoid bloodshed (war against the USSR), the Latvian government decided to fulfill Moscow's peremptory demands. As a result, June 17, 1940, 100,000 Soviet Army troops 30

occupied Latvia. Red Army units immediately seized control of all strategically important positions, thereby taking control of the entire count ry.

With the help of the Red Army and various agents, immediately after Latvia's occupation Moscow arranged political changes that were favorable to the Soviet regime. June 20 the formation of a new government was announced. A government with Professor Augusts Kirhensteins (1872-1963) at the forefront was assembled from social and political activists who were favorably inclined toward Moscow. A political theatre was organized on July 14 and 15, 1940 – elections were held for the new parliament (the so-called "people's Saeima"), in which the Soviet regime allowed only procommunistic candidates to run for office. As a result, July 21 the newly-elected Soviet marionette parliament voted to have Latvia become a part of the USSR. The sovietisation of Latvia was rapidly begun. Unlawful resolutions were adopted regarding the nationalization (confiscation from its owners) of land, buildings, banks, and various types of commercial and industrial enterprises. In Latvia Moscow began to terrorize those social strata that it considered menacing to Soviet power. Thus, the period from the summer of 1940 until June of 1941 has entered history as the "Year of Terror". June 14, 1941, thousands (approximately 14,000) of Latvians were deported to Siberia in cattle cars, where most of them perished.

Soviet repressions in Latvia were interrupted by the beginning of World War II and the rapid invasion of Latvian territory by Nazi Germany's armed forces. By July 10, 1941, German armed forces had occupied all of Latvia's territory. Latvia became a part of Germany's Reichskomissariat Ostland – the Province General of Latvia. Just as during the year under Soviet rule, Latvia was an occupied territory. Anyone who was disobedient to the German occupation regime as well as those who had co-operated with the Soviet regime were killed or sent to concentration camps. German authorities did not permit Latvia's sovereignty or even the possibility of autonomy.

In violation of international rights, both Nazi Germany and the Soviet Union unlawfully conscripted Latvia's inhabitants in their armed forces. During World War II more than 200,000 Latvian soldiers ended up in the rank and file of both occupation forces; approximately half of them (100,000) were killed on the battlefield. The Soviet Union included in its army a portion of independent Latvia's former military units, as well as those Latvians who had ended up in Russia as a result of warfare or those who had formerly lived there. The authorities of Nazi Germany also mobilized the former soldiers of independent Latvia's army. Initially, German authorities organized volunteer recruitment campaigns, 31

but when desired results were not obtained, soldiers were forcefully conscripted into the so-called "Latvian SS Volunteer Legion".

Latvia's population perished not only on the battlefield. During the years of Nazi occupation special campaigns exterminated 18,000 Latvians, approximately 70,000 Jews and 2,000 Gypsies – in total about 90,000 people. In the case of Latvians these were mostly civilians whose political convictions were unacceptable to the German occupation force. Jewish and Gypsy civilians were eliminated as a result of the inhuman Nazi "theory of races". Persecutions were mostly carried out by special German units (Einsatzgruppe A, Sicherheitsdienst, or SD) and police units. The German occupation regime attempted to involve the local population in war crimes. Thus, Latvian self-defense units, security police units, and SD auxiliary units were created and included volunteers who carried out part of the terror campaign.

Many Latvians were actively involved in a resistance movement against persecutions of the German occupation regime. For instance, Zanis Lipke risked his life to save more than fifty Jews. Civic circles in Latvia were also dissatisfied with the German occupation regime and secretly plotted to reinstate a democracy. In order to carry out the independence scheme an underground organization was established, the Latvian Central Council, which published the outlawed publication "Briva Latvija" ("Free Latvia"). The periodical was notably democratically inclined and propagated the idea of renewing democracy in Latvia after the war.

Nazi Germany began to suffer regular defeats on the eastern front and was pushed back to the west. Mid-July 1944 the Soviet Army once again crossed Latvia's pre-war eastern border, and by October 13 had already invaded Riga. Mid-October the German Army, which partly also included the "Latvian Legion", was besieged in Kurzeme. Kurzeme was flooded with refugees from eastern Latvia who were fleeing Soviet rule, the Red Army and persecution. With no other reprieve in sight many fled in fishermen's boats and ships to Sweden and Germany, from where until 1951 they drifted to various parts of the Western world (mostly Australia and North America). Approximately 150,000 Latvians ended up in exile in the West.

According to approximate estimates, as a result of the war the population of Latvia decreased by half a million (25% less than in 1939). In comparison with 1939 the Latvian population had diminished by

32

about 300,000. The war also inflicted heavy losses on the economy – many historic cities were destroyed, as well as industry and the infrastructure.

Whereas the end of World War II brought freedom for many countries in the world, for Latvia it brought half a century of Soviet occupation. After the war Moscow did everything in its power to quickly establish Russian law and order and to fully subjugate the population. Immediately following the re-occupation of Latvian territory, Moscow authorities began to persecute those who had cooperated with German Nazi forces. People were also arrested for activities during the period of independence, for being recognised as politically unreliable, for free thought, etc. The Russification of the Latvian society had begun.

During the post-war occupation period Latvia was one of fifteen Soviet republics. Power in Latvia belonged entirely to the Communist Party of the Soviet Union, which also included the Communist Party of Latvia (CPL). Other political parties or movements were prohibited. The first leader of the CPL during the post-war period was Janis Kalnberzins (1893-1986). Shortly after the end of World War II the Communist Party and its structures had gained control over all of Latvia. No important official could be confirmed in office without the approval of the CPL.

In accordance with previously prepared lists, on March 25, 1949, Soviet authorities arrested without trial more than 43,000 people and deported them to the north of Russia (Siberia). The deportees were mostly farmers, as well as those who were considered ideologically alien to the Soviet regime. As ascertained by Latvian demographers, during the period of Soviet occupation a total of 340,000 people in Latvia were deported and otherwise persecuted, of which approximately 130,000 never returned to their homeland (i.e. perished). Entire population groups were deported to the north of Russia – independent Latvia's former political activists, soldiers, farmers, students, even schoolchildren and infants. In this way the Soviet regime exterminated its potential ideological opponents and was able to implement sovietisation of the territory and mass collectivisation of the countryside. Collectivisation or the formation of kolhozes (collective farms) took place coercively, by forcing farmers to combine plots of land, livestock and farming equipment. This type of farming was completely alien to Latvia, but had been the manner of farming in Russia for several decades. By the end of 1950 almost all of Latvia's agriculture had been collectivised.

33

Due to its advantageous geographical location, Latvia became Russia's military centre in the Baltic region. Here the USSR positioned the Headquarters of the Baltic War District; land, sea and aviation bases; and also strategic missile bases.

A short period of changes swept over Latvia in the second half of the 1950s. The changes were linked to the "ideological thaw" in Moscow. The USSR was now led by Nikita Khrushchev, who since 1956 had publicly condemned the transgressions of his predecessor Stalin's regime. During this time the socalled national communists moved to the top of Latvia's political elite and attempted to rejuvenate the role of the Latvian language in society. They also tried to stop the uncontrolled immigration and settlement of peoples from elsewhere in the USSR to Latvia, and resisted the establishment of alien management methods in industry and agriculture in Latvia. As a result of foreign immigration the proportion of Latvians in the country had begun to catastrophically decline. In 1935 Latvians made up 75.5% of the population, but according to official Soviet statistics, in 1959 Latvians comprised only 62% of the population, and the proportion of Russians in the population had increased most radically. At this time the total population of Latvia was a little more than two million (for comparison – in 1914 the population was more than 2.5 million, and in 2000 – just short of 2.4 million).

The free thinking of Latvia's communists seemed dangerous to Moscow and a purge of about 2,000 national communists was initiated in July 1959. Many of the most gifted individuals in Latvia lost their positions and had to endure continuous harassment. By 1959 all disobedient Latvian national communists, including their most prominent representative, Deputy Chairman of the Council of Ministers Eduards Berklavs (born 1914), were purged from the ranking positions in the party. The Communist Party appointed obedient followers in their place. The defeat of the national communists in occupied Latvia marked the beginning of a new period that was characterized by total ideological and political control. This period is usually referred to as the stagnation period. Still, in comparison to other USSR-subjugated territories, the standard of living in Latvia remained relatively high and people from other Soviet republics attempted to seize any opportunity to move to Latvia.

3.2

Developments in Social Welfare

All in all the economy in Latvia during the Soviet occupation developed, and there existed an allencompassing system of education and health care. All education from primary school to the university 34

level was free of charge. The population also did not have to pay for health care. Important achievements were attained in science. 15 institutes of scientific research that were under the wing of the Academy of Science became the most important research centre. Research was conducted in physics, astronomy, composite mechanics, information technology, chemistry, aquatic biology, the study of viruses and molecular biology (most of these areas of research are being continued today). One fourth of all medicaments that were invented in the USSR were developed in Latvia. During the Soviet period 30,000 persons (1.2%) were employed in the field of science in Latvia, which was a very high indicator on a world scale.

Social care and social security were the responsibilities of the soviet government. During this period social security included: §

all sort of health care;

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benefits and pensions;

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benefits in cases of short-term disablement;

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disability pensions;

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prenatal allowances.

Social care in its turn was provided in the following types of social care institutions: §

old people’s homes (since 1964 – pensions for personal retirees);

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pensions for veterans of work;

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psycho- neurological boarding- houses;

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children’s homes, boarding-schools;

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pensions of general type;

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boarding-houses for disabled people.

Social care institutions employed medical personal and most of the social care in modern understanding was done by medical nurses.

All employees were members of labor unions whose goal was to protect workers’ social, economic, housing and professional rights and to provide social justice in distributio n of material and mental values. Conceptual objectives of labor unions declared that unions participate in elaboration of social development plans and protection of social rights. In the field of protection of social rights labor unions among other tasks carried out the following: 35

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controlled working conditions;

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provided labor protection for women, mothers and youth;

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acted to decrease the working week and to increase the minimal period of vacation leave;

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organized educational courses and training.

Social security system was based on the principles equality and collective responsibility. At the same time system of privileges and preferences existed that was aimed at the definite social groups. These groups were defined by the needs of the people but by the political and ideological criteria, e.g. veterans of the Great Patriotic war, personal retirees (veterans of the Communist Party). State provided two types of social assistance – material assistance (benefits) and institutionalized social care.

Besides the state activities in the field of social welfare there were few organizations that provided some work in this sector and that could be described as non-governmental, mainly societies and unions for people with various kinds of disabilities and Red Cross Society of Latvian Soviet Socialist Republic. The latter was part of the Red Cross and Red Crescent Society of the USSR and it spread rather steadily.

Data on Red Cross Society of Latvian Soviet Socialist Republic 1941 - 1960

Year

Number of local

Number of members

organizations 1941

495

13 188

1945

598

20 953

1950

2 830

100 101

1960

4 161

293 860

One of the main roles in social welfare system in Soviet Latvia played social provision. After WWII all the institutional structure was completely developed and implemented, including Soviet social provision policy which has to be implemented and guided by central means: the whole power of decision making belonged to Ministry of Social provision of USSR. Soviet republics, as Latvia, had their own Ministries of Social Provision, in Latvia’s case – Ministry of Social Provision of Latvian SSR.

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In general, Soviet system of social provision was oriented towards three main goals: •

to provide assistance to certain people, who has made special assets to the country (like military, outstanding Communist Party members, mothers – heroes ( having 10 – 12 children) etc.) ;

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to provide financial benefits to the people similar classic insurance (retirement pensions, financial assistance in case of temporary loss of capacity to work, surplus fees for those who are working in extreme circumstances (danger job) etc.);

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Total social provision for those who has no or minor support from their families, like social benefits for children, social benefits for families with more than tree children, one – parent families etc.)

All mentioned goals we can consider as the guidelines for social policy implementation in Latvia also.

Social legislation in USSR level we can regard and analyze as the system of social provision. The mission of system of social provision was originally embedded in the Constitution of USSR, paragraph 120. as the right for everybody to material provision in elderly years and in case of loss of capacity to work ( Constitution of USSR). Once in five years the current congress of Communist party of USSR has set goals for social policy implementation. In the level of Soviet republics, as Latvia, the body policy in this scope was defined by the Congress of Communist party of Latvian SSR.

The whole concept of social provision is defined by soviet scientist Andreev as “The set of socio – economic measures carried out by the state and aimed to provide elderly citizens and those who has lost their capacity to work with benefits, to provide care of children, and to ensure medical assistance and healing as the specific measures for the social and medical rehabilitation, including preventive measures, for the reestablishment of working abilities of soviet people.

After WWII the economy was partially destroyed but regardless of economic disaster guidelines of social provision remained fully financed. One of the basic laws in this social legislation framework was Law on State pensions (1956) and derivative legal acts on social provision of those who has lost their capacity to work as the result of illness, working trauma etc. The amount of pension was equal for everybody who has reached certain age: 55 years for women, 60 for men.

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All mentioned legal acts were adopted to follow three fundamental constitutional rights of soviet people: •

The right to receive social assistance in elderly years and in case of loss of capacity to work;

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The right to receive medical assistance and healing free of charge;

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The right for upbringing children and to support them with financial support from the State.

Before the detailed coverage of the implementation of all three rights it makes sense to draw the difference between two subjects of Soviet system of social provision: citizen and family from one side as those who have the right for social provision, and from other hand – state agencies and social organizations, like labor unions, who were entitled to receive some functions of state in the process of delegation. Their functions were close to the traditional functions of mediator between state funds and certain receiver. In Latvia case, labor unions were really active and creative agents in production of social welfare for people.

The first - right to receive social assistance in elderly years and in case of loss of capacity to work, were embedded into legislation, guaranteed for everybody in process of aging and incapacity and financed from sources of centralized State funds (Gosstrah, part of taxes paid by enterprises, organizations and collective farms, part of state budget). Sources to these funds came directly from taxes: total amount of the tax load was relatively high: 4 – 12% of average salary fond of the enterprise or collective farm.

The age of retirement was relatively low; 55 years for female, 60 – for male population in Latvia. But, regardless nice picture of happy aging in USSR made by politechnologists to promote the image of USSR and each soviet republic as the fields of happiness, the average level of retirement pensions in a «basket» of social provision remained relatively low. Retirement pensions became the only source for existence for elderly people, who was alone, without family support. According to research data and census data from the beginning of 60ties, majority of people in needs in Latvia were pensioners.

Regardless this, there were some advantages in retirement policy, at least in the eyes of soviet people. For instance: there was a possibility to get retirement earlier, only on the basis of individual demand, for instance, for the reason to participate fully in housekeeping. This was a kind of reflection of people’s voice: in 50ties and 60ties referendums were carried out on the topic of retirement age and

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majority of soviet people articulated their will to go to the retirement earlier. It was no accepted only because of financial reasons.

The second - right to receive medical assistance and healing free of charge; came into power after 1937, with the termination during years of War. Every medical manipulation was totally covered by financial sources from the State budget. Nobody was excluded even those who did not work. There were two status of medical institutions: either regional according to place where the person live, or specialized medical institutions for certain professionals, like military or other.

In Latvia in 1945 great efforts were made to reestablish the network of hospitals, taking into account disasters of war, especially in Latgale region. Starting from the late 40ies the regional large hospitals were developed as well as local multi-profile policlinics – ambulatory health care institutions.

The third - rights for upbringing children and to support them with financial assistance from the State we can describe as the several legitimized forms of social upbringing and education of children: part of traditional functions of family was taken by the State. These institutions were kindergartens, infantries, boarding schools, other child care institutions like residential care centers, schools – sanatoria. All of them were financed by state budget. There were developed approximately 200 kindergartens in Riga (1945 – 1950) and child care there was free of charge. Schools – sanatoria were only some and situated near the capital city Riga, in Baldone, Ligatne, «Meza skola» in Riga.

All mentioned goals and principles and rights were observed in Latvia. However there was some degree of independent decision making by local authorities of Latvian SSR. For instance, the criteria for being entitled to certain benefits and other forms of assistance was defined by central authorities (I.Bite, personal conversation) , but the evaluation of clientele was delegated to local boards. We can put forward three institutions with the great significance in the field of Social welfare in Latvia in those years – village boards (ciema padomes), district boards (rajonu padomes) and local /professional labor unions (Bite, personal conversation). All three boards were subjects of the legal system of Soviet social provision. They were responsible for the dissemination of state benefits and other social services like health care and child care and education services.

We can assume that the principle of subsidiary (in the following interpretation service and assistance closer as possible to the client) was fully implemented in those economically hard years. 39

In Latvia the function of social rehabilitation was carried out by sanatorias and nursing homes. They were placed close to capital city Riga – Jurmala and Sigulda, also Baldone and Ligatne. Disabled people, families with more than 3 children, persons after serious surgical treatment, elderly people etc were among the clients. Legal status of those rehabilitation facilities was ambivalent: there was a system of double subordination: some of them were under the supervision of State and local boards, other – on supervis ion of republican boards and under local boards. (I.Bite, personal conversation).

Labor unions played the crucial role in the distribution of social benefits and services among employees. They were responsible of health insurance for employees, distribution of portfolio of social rehabilitation services (un nursing homes and sanatorias).

Case #1. Social policy on disability and status of disabled people in Latvia 1950 – 1960.

WWII brought disaster and wave of dis ability all over the Europe. USSR and Latvia (LSSR) in those years were not exclusions. Among adult male population in Latvia there was a significant amount of men, survivors of war, with serious injuries and with partial of full loss of capacity to work. It was true especially regarding elderly male population. Several thousands of former Red Army military with disablement have settled in Latvia – Kurzeme, Riga, Lagale, Zemgale regions after the end of War.

On one hand, mass disablement in all over USSR, as well, in Latvia, was the evil consequence of WWII, on another hand in this desperate situation social policy on disability was developed. Again: centralized policy guidelines, but local implementation. But in all soviet republics disabled people were stratified by the reason of getting disabled: those with working trauma, and chronic illness as the cause of disability were treated less carefully and the scope of benefits for them was narrow in comparison with veterans of war.

According with the Soviet legislation of 1932, several categories of disability were developed. I group: people without any capacity to work and needed in permanent outer care. II group: people without any capacity to work in any profession. III group: people, who have lost their capacity to work partly, but possess the capacity to perform less sophisticated operations in part time working circumstances.

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Classification like this has legitimized injustice in the treatment of disabled persons, and competition among the institutions who suppose to care for them. Legitimate members of the group were entitled to the wide scope of financial benefits and services and there were unhealthy competition among disabled people to get the highest group, even using not appropriate means.

In Latvian society there were a lot of cultural biases in those times. We can observe dramatic switch in social attitudes towards disability. In first 10 years there was rather socially shared respect toward disabled persons like toward war heroes. But starting with middle of 50ties in Latvia, as well in other Soviet republics, different attitudes were ideologically supported: the outer image of USSR tended to be promoted as the flourishing welfare state where everybody is healthy and happy. As the main argument free of charge health care, education, and social services were exploited. Thus in 50 – 60 ties the policy of isolation of disabled people has been implemented, a network of residential care institutions was developed: special schools, workshops, boarding – schools. Social exclusion of disabled people became the politically supported measure in social policy in Latvian SSR.

As the illustration of a set of social benefits for disabled people in Latvia, we can put an example; the basic criteria of differentiation of allowances and compensations for disabled people in Latvia (data from 1958).

Criteria of differentiation of allowances and compensations for disabled people in Latvia (data from 1958) Population included

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All the categories of disabled persons;

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Certain categories of disabled persons;

Form of distribution

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Moral rights (certain rights to have special services etc.);

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Financial aid (free of charge medicine or medical services);

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Material objects as the form of aid (specialized technical assistance like vehicles) 41

Periods of distribution

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Distributed once or several times, but in the longer period of time (telephone line free of charge, renovation of apartment etc.);

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Monthly (partial compensation of apartment payments, water supply, electricity, gas etc.);

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Annual (free of charge intercity transportation once or twice a year; rehabilitation session in sanatoria )

Reason of disability

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Invalids of war and persons regarded as such;

Categories of allowance

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Sightless persons;

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Others

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Pensions, tax load, special allowances;

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Acquisition, renovation , building or maintenance of living – space ;

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Household payments, special market services;

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Health care services;

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Free of charge transportation;

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Vocational training and employment;

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Use of communication services, sports and cultural events;

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Specialized social services, social and legal assistance.

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Case #2. Labor unions in Latvian SSR – social support network for working persons and their families. Interview with former director executive of local committee of labor union of Academy of Science, Latvian SSR, Maiga Petersone and her former deputy Lida Balevica.

As it was mentioned before, labor unions played essential role in the implementation of general policy of social provision in Latvia. Many people have got their allowances, or rehabilitation services being members of labor unions or the family members of them.

The goal of interview was to find out the major roles of labor unions in the provision of social services in Latvia in years 1945 – 1960.

“Labor unions in Soviet Latvia were the source of social support for all the employees and their families. We can count approximately 89 – 92 % of all the population has got some beneficial provision from labor unions. The system of social provision through labor unions was developed in the Congress of Labor Unions of USSR, in 1946. The scheme of decision making and professional structure and hierarchy of labor unions was as such:

Hierarchy of labor unions in Soviet Latvia /according to Maiga Petersone, personal conversation/

Comities of Labor unions of certain professional branches (like, educators)

Central council of labor Unions of LSSR

Central council of labor Unions of USSR

Local comities of labor unions in

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As it is seen from this figure decisions dealing social policy issues were made in central level, but the implementation was distributed locally, as is was emphasized before.

Lida Balevica covered the main areas of expertise of local comity were implementation of social provision policy and also some elements of unprofessional psychosocial work, for instance, working with addictions among employees, divorced families and children etc.. Financial sustainability was ensured by grants from social budget paid mainly by enterprises and organizations, plus 1% of salary, and 2% starting with salary of 300 rubles.

“First: all the health care issues were solved by labor unions: allowances in the case of illness were covered by labor unions. They made 90% of monthly salary, and every employee was entitled to be ill 4 month a year with no financial risk. It was a privilege of members of labor union therefore 98% employees of Academy of Science of LSSR were the members. All rehabilitation sessions and vouchers to sanatorias were distributed here – also for family members. Every expense was fully covered by labor union. Also, if physicist has prescribed certain dietary or special nutrition, it was possible to get free of charge meals in special restaurant on vouchers given by local comity of labor union.

Second: Recreation and culture. Local committee possessed their own pioneer camp «Gauja», in Carnikava, close to Riga. More slots were available in other recreation or pioneer camp for children of members. There was a Commission on Culture in our local comity and all cultural life of Academy of Science was organized by it: theatre, dance ensemble, chorus.

Third: legal support of employees in case of unmotivated firing was ensured by local committee.

Fourth: special extraordinary allowances were paid, for instance, in case of death of relative.

Fifth: all the maternal leave expenses and allowance in the case of birth of child were paid by our comity. Every mother has entitled to 56 days paid leave before and after she delivers. Also, the amount of allowance in the case of birth of child was rather high – 300 rubles.

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Sixth: living – space programs. There was a variety of support of this kind: free summer houses, camping for a one month every summer; special fond of apartments for members of labor union, distributed according to special requests. “

In conclusion, it seems social provision in Latvian SSR was fully available for everybody, but some shortcomings are more than explicit: regardless fully recognized soviet citizens’ rights to receive wide varieties of social benefits and services and free of charge health care and upbringing of children and education. There were minor groups close to the margin of social exclusion or really marginalized groups: jobless people and pensioners, who, regardless having small jobless person payment or pensions, remained on the border of existence: welfare in the broad sense was no accessible for them. Treatment of addictions was not developed also.

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