Kirovs Lipmans: Latvia Missed Its Economic Opportunities in the 1990s

Businessman Kirovs Lipmans, chairman of the supervisory board of the Latvian pharmaceutical company Grindeks, says in an interview in the “Latvia 2035” series, published by the portal Jauns.lv, that the 1990s, when Latvia restored its independence, left him with a heavy bitterness over missed opportunities. He bases his judgments on many years of work in real production.

The 1990s

Lipmans argues that a country with fewer than two million people had strong infrastructure: three ports, forests and a large production base. Even so, it did not become one of the richest countries in Europe or the world. In his view, the small state was too busy with politics when it should have turned to the economy.

He believes the large companies should have been preserved at all costs and the ports kept from emptying out, and he calls this the biggest mistake. As an example he cites the steelmaker Liepājas Metalurgs, which he took on to rescue after an agreement with the then prime minister Andris Šķēle. The company became profitable again for a time, but Lipmans left because of dishonest partners and an unsettled legal environment. He says he was asked to hide profits and avoid paying taxes, so he walked away.

View of politics

Lipmans says he stays far from politics and that his priority has always been the real economy. He notes that sector ministers often lack an understanding of production. In his view, business experience does not guarantee success in leading a government, which requires choosing allies well and avoiding internal disputes.

On ice hockey, which he managed for two decades, he stresses that a national team cannot consist only of players from foreign leagues and that the domestic championship needs strengthening.

The outlook to 2035

The businessman ties optimism to a radical change in the principles of cooperation within public administration. Experience in pharmaceuticals, he says, shows the value of independence, investment in employees and timely diversification of markets; this has helped Grindeks reach a turnover of hundreds of millions of euros. He believes that with a capable and professional government Latvia can reach a high level of prosperity, but if politicians cannot find common ground, the country will remain where it is now.