IT in Latvia--Computing & Internet Diffusion

The government, and its "Informatics" program, has been the driving force behind IT development in Latvia¹⁰, while being complemented by the incoming foreign investors. Please also refer to the "Government Policies," "Telecommunications Infrastructure," "E-commerce" and "IT Labor Market" sections for additional information.

Another important issue in the diffusion of computers and Internet usage is that of the English language. English literacy in Latvia is low although learning English is growing in popularity nation-wide. Latvia is a small country that has withstood tremendous pressure while maintaining its cultural identity and preserving its language. The influx of "English" words into the Latvian language shows the growing trend toward globalization, while Latvian language is being used with increasing frequency on Internet home pages¹². Latvia will need to maintain a fine balance between implementing policies to preserving its language and allowing itself access to the global marketplace through increased use of English.

A balance will also need to be found to encourage development in urban as well as rural areas. Huge discrepancies exist between Riga, the capital, and the countryside. The average inhabitant of rural Latvia has never used a mouse before, while many inhabitants of the larger cities use computers regularly in their work. The level of computer usage is still overall low and unsophisticated, but growing rapidly. As the digitalization of phone lines continues, those in rural areas who do have Internet access often are troubled with frequent disconnects and slow transmissions.

While it is undeniable that Internet and World Wide Web use has exploded throughout the world, it is difficult to quantify Internet penetration, at a national level, into social, business and educational areas. According to the U.S. Department of State, one useful measure is to examine a "hostcount" which shows the number of discrete Internet hosts that are registered within the top level country domains⁹. The density is calculated by dividing the hostcount (as reported by RIPE) by the population to arrive at a hostcount per capita (10,000 persons). This method yields a more accurate analysis than the raw hostcount figures because they are adjusted for the relative size of the country. Using this method in 2000, Latvia ranked fifth among the 16 surveyed countries. It showed a growth rate of about 23.8% over the previous audit (approximately one month earlier). In 2000, there were about 41 Internet service providers in Latvia (source: Survey of ITTE sector in Latvia, Phare, 2000).

Jan-1994

Jan-1995

Jan-1996

Jan-1997

Jan-1998*

Jan-1999*

Compound Annual Growth Rate

1994 - 1998

Change

1997 - 1998

526

1,326

5,789

7,110

15,052

201.9%

111.7%

At the end of 1998, there were approximately 7.5 computers for every 100 inhabitants in Latvia. In 1998, 24,000 computers were in use in households, while 156,000 computers were owned by companies and institutions¹².

In January 2000, there were 77 Internet connections per 10,000 inhabitants (Source: RIPE, quoted in “Estonia- Your new source of IT solutions”, EIKAS 2000). In 2000, approximately 10% of Latvians were Internet users⁸.