Click here to return to IRED.com
Navigation Tabs


Mortgage Lenders Tools for Agents Consumer Services Ratings and Icons Descriptions USA Realty Directory International Realty Directory Add or Enhance a Link in the IRED Directories Advertising on IRED Information about IRED Site Map

Archived Articles

Simeon Mitropolitski

Simeon Mitropolitski is a Canadian analyst, of Bulgarian origin, and a former syndicated columnist with the Bulgarian News Agency (BTA). He is the author of several hundred articles dealing with hot political and economic topics, both national and international.

He was part of the first group of Bulgarian intellectuals and students that began the opposition movement that finally put an end to the communist regime in this country in 1989, and in 1996-1997 participated in international observation teams during the elections in several Balkan countries - Romania, Albania and Bulgaria.

In 2002 Simeon and his family moved from Bulgaria to Canada where they live now in Montreal, province of Quebec. Simeon is a Master of Political Science from McGill University and a B.A. of Political Science and History.

Global Real Estate Project
News Index

Directories
  Int'l Realty
  US Realty


5 May 2005

Baltic: Excellent economies, worrying (international) politics

© 2005, IRED.Com, Inc., Simeon Mitropolitski

The three former Soviet Baltic republics, Lithuania, Latvia, and Estonia, have shown excellent economic and market performances during the last 12 months. At the same time it seems clear that their former masters in Moscow keep trying to undermine their national legitimacy and their natural desire to behave in fact as sovereign countries. Recent scandal around the 60th anniversary of the WWII victory that would be celebrated in May again revealed that being a member of NATO and EU isn't just enough to live a quiet life when the Siberian bear roars at your doorsteps.

But first to begin with the good news. The Baltic countries did extremely well in terms of economic growth and real estate market development during the last 12 months. As a region they were the best performing unit not only in the Eastern and Central Europe, but also in the EU as a whole. Prices, rents, all went up. In the capital cities the sq.meter of modern residential space is sold for EURO 2,000 and more, which basically confirms our most optimistic forecasts from 2004. To go living and working in these countries for the international companies has become stylish. The only real economic problem that eventually in long-term could hinder this excellent economic performances is the demographic. All three countries are losing population because of natural causes and also because of still continuing emigration, mainly toward the richer West European countries.

The bad news is still predominantly related to the international politics. This time the event that sparked the fire is the 60th anniversary of the WWII victory in Europe, meaning Russia is preparing a big military parade on the Red Square, inviting all state and governmental leaders from around the world to attend and acknowledge the leading role of the former USSR for the defeat of the Nazi Germany. The problem is that this date for some nations, particularly for the Lithuanians, Latvians and Estonians, isn't by a coincidence also a date of their reoccupation by the Red Army at the end of the WWII. To celebrate this date for them without mentioning this occupation would be tantamount to celebrate the occupation itself. Not to celebrate would mean to lament the defeat of the Nazi Germany. Catch 22 or trap 22.

By inviting the three Baltic presidents to attend the official ceremonies in Moscow without mentioning anything concerning the Soviet occupation of 1940 and 1945 the President Putin made them choose between international isolation (in case they refuse to attend) and accepting their former subservient situation as normal (in case they accept to attend). Two of the presidents refused the invitation; one from Latvia accepted stating that she will draw the Western attention to the history of the Baltic nations.

There are many ways to assess the continuing Russian interference in the Baltic affairs. One of them is that Moscow still considers them as part of its sphere of influence and still can't accept the fact that they are part of NATO and EU. Perhaps Russia doesn't see these two organizations as something that will last for too long, and in any case the Russian state will always, at least according to the Kremlin ideologues, exist at their doorsteps. Another possible explanation is that Russia doesn't really want to take back the Baltic states. What it really wants is to bargain its positions in this region against some other regions and states like Belarus, Ukraine, Caucasus, and Central Asia.

During the last meeting between Putin and Bush we mentioned that very suspiciously the issue of who will have the final say over which part of the former USSR has remained unsolved or at least wasn't stated in public. I will be very disappointed although not at all surprised if 20 or 30 years from now on I learn that the fate of some nations in the former Soviet Union was sealed by a secret agreement. If so I can feel only a sorrow for those who will eventually happen to be on the wrong side of the new iron certain. Perhaps what's going on right now in Kyrgyzstan will give us more clues?

Baltic states (Lithuania, Latvia, Estonia) profiles:
  • Area: 65,200 sq km; 64,589 sq km; 45,226 sq km.
  • Population: 3.6 million; 2.3 million; 1.3 million (July 2004 est.).
  • Population growth: -0.33%; -0.7%; -0.66% (2004 est.)
  • GDP per capita: purchasing power parity $11,400; $10,200; $12,300 (2003 est.).
  • GDP real growth: 9.0%; 7.4%; 4.7% (2003 est.)
  • Internet users: 695,700; 936,000; 444,000.
(Source: CIA - The World Factbook 2005)

--------------------

See also the directory of companies providing real estate services in, and general real estate information of Latvia, Lithuania and Estonia.

Was this article helpful?    


See also:


| IRED Home | Search IRED |


© 1995-2009 IRED.Com, Inc
All Rights Reserved