Head West, Young Man | Down-river Rīga

A  balmy autumn day, and a pleasant breeze. It was time for Peters to explore a new neighborhood, so he headed west to explore along the Daugava right bank down-river from the old town of Rīga.

The state of destitution was not all the making of half a century of Soviet occupation and neglect. Post-independent inflation, the product of aligning to the global economy, ran rampant following the restoration of independence:

  • 1992 – 951.2 percent, more than a ten-fold multiplication of prices
  • 1993 – 109.2 percent, more than double
  • 1994 – 35.9 percent, up by more than a third
  • 1995 – 25.0 percent, up by a quarter

By the time of the elections in the fall of 1995, the equivalent of one dollar at the end of 1991 was worth less than three cents in purchasing power. The full picture was even grimmer. Devaluation from the Soviet ruble to Latvian ruble to the lat, introduced in 1993, turned 5,000 rubles — someone’s life savings, more than enough for a comfortable retirement — into 25 lats — about forty dollars at the time. A substantial middle class, regardless of living under the Soviet regime, was reduced to subsistence living. One only had to walk by the appliance stores on Brīvības iela (Freedom Street) for a sign of the times: Lithuanian-manufactured refrigerators, the cheapest available, for sale on a five year installment plan.

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