Baltic Journal of Legal and Social Sciences

INTRODUCTION

Alexey Aleksandrov — Fri, 21 Nov 2025 00:00:00 +0000

INTRODUCTION

BANK DEPOSITS IN LATVIA: RECENT TRENDS AND DEVELOPMENT

Natalia Konovalova — Fri, 21 Nov 2025 00:00:00 +0000

Bank deposits occupy an important place in the sources of the formation of banking resources, and in many European banks reach 70%. However, recently, due to unstable economic policies, the amount and share of total deposits in the banking system has been declining, which leads to a shortage of long-term banking resources. In this article, the author examines the trends in the development of bank deposits in Latvia, identify patterns in the process of their formation in conjunction with active operations that generate income. The problem of turning deposits into bank assets in terms of the timing, scale, expediency and efficiency of the use of attracted funds was highlighted. The purpose of the study is to analyse and assess the trends in deposit operations in Latvia, as well as their forecasting until 2030. Author used such methods as economic analysis, comparison method, economic grouping, statistical methods, extrapolation method and others. The results of the study can be used by both commercial banks and their customers.

DOES MONEY HAVE A FUTURE?

Oleksandr Sharov — Fri, 21 Nov 2025 00:00:00 +0000

Money is one of the greatest inventions of the human mind and an effective tool of globalization. At the same time, not only monetary globalization contributes to the process of economic globalization, but globalization itself influences the change in the order of functioning of money (globalization of money), reflected in the modernization of their functions. At the heart of such modernization are the phenomena of Ddestuffation and Dereification of Money. Such changes do not change the Essence of Money, but reflect the increasing Entropy of Money, which in the case of Technological Singularity can lead to the abolition of money (which communist utopians could not achieve) as a result of Money Singularity. And yet, it seems that the Law of the Indestructibility of Money will win again.

DIGITAL TRANSFORMATION OF FAMILY OFFICES: TECNOLOGIES, AGGREGATION PLATFORMS, AND THE ROLE OF AI

Nadiia Novytska — Fri, 21 Nov 2025 00:00:00 +0000

This article explores the digital transformation of family offices through the integration of specialised technological platforms and AI-based tools. It analyses leading digital solutions for financial reporting, investment management, and data aggregation, with a focus on platforms such as Asora, EY Nexus, Asset Vantage, and Addepar. The research is based on a comparative analysis of platform functionality, market penetration, and the degree of artificial intelligence and machine learning integration. Findings show that platforms enabling automated reporting and asset monitoring improve operational efficiency, while AI-powered solutions enhance personalisation and client experience. Particular attention is given to asset aggregation platforms, which reduce data fragmentation and enable consolidated financial insights. The study relies on data from industry reports (e.g., UBS, EY, Campden Wealth) and official product documentation.

TOKENIZATION OF REAL-WORLD ASSETS (RWA): A BRIDGE BETWEEN TRADITIONAL FINANCE AND BLOCKCHAIN

Anastasiia Aloshyna, Alexey (Oleksii) Aleksandrov — Fri, 21 Nov 2025 00:00:00 +0000

This article explores the phenomenon of tokenization of real world assets (RWAs) as a key trend in the development of the modern financial ecosystem. The mechanisms of transforming physical and financial assets into digital tokens on the blockchain are analyzed, the advantages and risks of this approach are considered, and up-to-date data on the growth of the RWA market are presented. Research indicates that the market for tokenized assets is demonstrating exponential growth, having reached USD 176 billion in 2024, with projections estimating an increase to USD 16 trillion by 2030 [1,2].

UKRAINE’ DEBT AND COUNTRY IMMINENT ECONOMIC DEVELOPMENT

Volodymyr Danko — Fri, 21 Nov 2025 00:00:00 +0000

Ukraine extraordinary tasks are: insuring country economic growth, stimulating the economy & fostering growth with respect to following inevitable challenges such as: damages of physical infrastructure like roads, bridges, buildings, and factories, disrupted production, transportation, and basic services; human capital loss – decrease of workforce and innovation potential; financial draining - reconstruction requires significant funding; social and political instability - aggravated social tensions and political instability; obstructed longterm planning and investing. At the same time country ought to search for prospects such as: after war resilient demand for goods/services, stimulating production and job creation; using latest advances in construction, technology, and infrastructure development; rebuilding ties with international community for financial and technical assistance; insure market growth that attracts foreign and local investments including debt financing.

THE IMPACT OF FINANCIAL LITERACY ON THE DEMAND FOR REAL ESTATE INSURANCE IN LATVIA

Aina Čaplinska, Jekaterina Dudele — Fri, 21 Nov 2025 00:00:00 +0000

The studies published between 2018 and 2023 extensively investigate the impact of different factors on the decision to purchase real estate insurance. Only a small number of these studies examine the effects of financial literacy on the demand for property insurance. This paper aims to explain the impact of financial literacy on the demand for real estate insurance and to identify measures that can be taken to develop financial literacy to boost the demand for real estate insurance services in Latvia. The paper hypothesizes that developed financial literacy has a positive impact on the demand for real estate insurance. To achieve the aim of the article and to test the hypothesis, several tasks have been set: to describe the development trends of the real estate insurance market in Latvia to conduct a survey of policyholders' individuals on real estate insurance services in Latvia; to conduct interviews with real estate insurance specialists. The article applies qualitative (monographic method) and quantitative (structured survey of respondents, descriptive statistics, ANOVA test, dynamics, and structure indicators) research methods. The novelty of this article lies in the fact that the impact of financial literacy on the demand for real estate insurance services in Latvia is investigated. The impact of financial literacy on the demand for real estate insurance has not been widely studied in Latvia or other countries of the world. Individual-level factors influencing the decision to purchase real estate insurance, such as property type, property risk exposure, property value, access to finance, mortgage credit, risk perception, previous risk experience, and savings, have been extensively studied. The study concludes that financial literacy is a factor influencing the overall demand for property insurance in Latvia.

THE DEVELOPMENT OF AN INCLUSIVE ECONOMY COULD GIVE IMPETUS TO THE FORMATION OF DIGITAL NEO-FEUDALISM

Jurijs Baltgailis, Vladimirs Menshikov — Fri, 21 Nov 2025 00:00:00 +0000

At its core, an inclusive economy aims to create an economic system that benefits everyone and leaves no one behind. It goes beyond the traditional notion of GDP growth and focuses on improving the overall quality of life of all members of society. This perspective requires broadening the metrics used to assess economic success to include factors such as health, education, and social mobility. One of the key components of developing an inclusive economy is called “financial inclusion” – providing people with the means to access, use and benefit from all financial services, such as bank accounts, credit, insurance, pension savings and investment products. McKinsey Global Institute's (MGI) estimates that to achieve approximate equality of opportunity for the world's population, additional resource growth from GDP would be needed at approximately 8 percent per year in the coming decades! The MGI puts productivity growth at the heart of the solution. Globally, increasing productivity by about one percentage point a year, and upskilling 10 percent of the workforce to move into more productive sectors, could close up to two-thirds of the empowerment gap over the next decade. This upskilling depends on businesses creating more productive jobs and equipping workers with the skills to do them effectively (McKinssey&Company. 2024). Our research in the field of labor productivity shows that despite the development of digital technologies and artificial intelligence, in the conditions of widespread slowdown in GDP growth, long-term inflationary processes, aggressive sanctions and customs policies, there is no possibility of sustainable growth in labor productivity (Baltgailis J., Simakhova A., Buka S. 2025). It seems that global structures see overcoming this slowdown in the universal introduction of digital currencies into the financial system, allowing state institutions, coupled with private digital giants, to take full control of transactions of the population and business, which, as stated: “Integrating economic inclusion into DEI ( Diversity, Equity, and Inclusion) efforts enables broader societal changes that empower individuals and strengthen communities, ultimately contributing to a more just and resilient economy” (Oxford Review.2025). In our opinion, the emerging system of economic blocs and countries, the contradictions between state institutions and private digital giants, the division of the financial sector into centralized and decentralized do not allow us to talk about the prospects for the formation of an inclusive economy in the near future. The goals and objectives for the development of an inclusive economy, which are proclaimed and developed by the state, often coincide with or are close to the goals and objectives of digital platforms and large corporations, which does not reflect reality and forms neo-feudal prospects for the economic development of the global world economy.

LATENT STRUCTURES AND RECOVERY PATHS: A COMPARATIVE STUDY OF BALTIC SOCIO-ECONOMIC TRENDS

Zhanna Tsaurkubule, Catherine Zhukovskaya — Fri, 21 Nov 2025 00:00:00 +0000

This study investigates the post-COVID socio-economic recovery of the Baltic States – Estonia, Latvia, and Lithuania – through the lens of Principal Component Analysis (PCA). Using standardized data from 2019 to 2023, PCA is employed to extract latent dimensions underlying key economic and social indicators. The analysis reveals distinct structural profiles across the three countries, highlighting differences in resilience, adaptability, and policy effectiveness. Estonia demonstrates consistent macroeconomic stability and institutional strength, Lithuania shows dynamic but uneven growth, while Latvia exhibits gradual recovery marked by short-term volatility. By reducing multidimensional data into interpretable components, PCA enables a nuanced comparison of recovery trajectories and offers insights into the structural factors shaping regional development. The findings contribute to the understanding of post-crisis adjustment in small open economies and inform future policy design within the EU context.

DIGITAL RESILIENCE IN WARTIME: UKRAINE’S PATH TO DECENTRALISED GOVTECH ARCHITECTURE

Igor Dunayev — Fri, 21 Nov 2025 00:00:00 +0000

This article examines the provision of digital resilience in public governance through the lens of synthesising Ukraine's experience of “forced innovation” with European regulatory standards in the context of technological evolution. Based on an analysis of the Municipal Dispatch Service ‘1562’in Kharkiv during 2023- 2025, which demonstrated remarkable operational resilience indicators under full-scale war conditions (97.3% availability whilst processing over 1.2 million requests), the author identifies a unique phenomenon whereby extreme conditions stimulate technological innovations that outpace traditional regulatory mechanisms. The research reveals the evolution of EU-Ukraine cooperation in digital transformation through the EU4DigitalUA, DT4UA programmes and GovTech dialogue, demonstrating a transformation from a ‘donor-recipient’ model to a strategic partnership for exchanging innovative practices. A comparative analysis of the Ukrainian adaptive response model and the European regulatory DORA (Digital Operational Resilience Act) model reveals their complementarity across five key dimensions: ICT risk management, ease of implementation, scalability, viability under threats, and resource efficiency. The author proposes a theoretical ‘Cascading Resilience’ model – an adaptive system with three levels of operational readiness for each functional block, combining the rapid reactivity of the Ukrainian model with DORA's structured approach through decentralised Web 3.0 technologies. The model envisages not automatic switching between modes, but conscious decisions supported by algorithmic assistance, ensuring functionality even with 60% infrastructure loss. The research raises critical ethical and methodological questions regarding the use of ‘survival data’ from combat zones for training AI systems in other cities, as well as the limitations of simulating real crises. The conclusions emphasise the necessity of synthesising Ukrainian anti-fragility with European systematicity to create a new paradigm of digital resilience adequate to the challenges of an era of global turbulence.

NAVIGATING DEMOGRAPHIC CHALLENGES FOR SUSTAINABLE ECONOMIC GROWTH IN THE BALTIC STATES

Vagif Bakhshaliyev, Alexander Masharsky — Fri, 21 Nov 2025 00:00:00 +0000

The Baltic States face severe demographic challenges, including low fertility rates, high emigration, an aging population, and urbanization pressures. These factors have significant implications for sustainable economic growth. This research study aims to assess the impact of these demographic trends on economic growth in the three Baltic States, Estonia, Latvia, and Lithuania and propose solutions to foster economic stability. Using a panel regression framework, this research analyzes longitudinal data from 1990 to 2023, sourced from the World Bank and United Nations Population Division. The study examines key demographic variables, fertility rates, age dependency ratios, urban population growth rates, and net migration. On the other hand, sustainable economic development is measured using GDD per capita data. Descriptive statistics, multicollinearity assessments, and robust fixed-effects regression models were employed to in the data analysis process. The statistical tool that was used is the R Software (R-code provided in Appendix 2:. The findings of the research study reveal that the age dependency ratio significantly influences GDP per capita. This highlights the burden of a growing elderly population on economic productivity. In contrast, urban population growth, net migration, and crude birth rates were not statistically significant predictors. The findings show that the increasing dependency ratio is the key demographic challenge affecting the Baltic States. To address these challenges, the study recommends resolutions to extend working lifespans, such as raising the retirement age and offering phased retirement options. Additionally, immigration policies targeting younger, skilled workers could mitigate labor shortages.

PROBLEMS OF EMPLOYMENT STATUS OF COURIERS IN EUROPE

Andrejs Surmacs, Evelina Surmaca — Fri, 21 Nov 2025 00:00:00 +0000

In given article authors of the study examine the main challenges food and goods delivery market are facing, including but not limited with a focus on employment conditions of delivery couriers, market competition, technology, safety, competitive strategies, and possible solutions. Given article reviews academic work published over the past five years by paying special attention to algorithmic management, burnout, inequality, and the legal status of couriers. The courier-delivery sector underwent rapid growth during the 2019 pandemic, and the number of couriers delivering groceries and other items has continued to rise each year. Yet labor legislation for couriers remains poorly structured, resulting in unfair working conditions and inadequate social protection. The authors surveyed courier employment in several countries around the world, and the findings enable them to propose recommendations for improving working conditions and strengthening regulation of the delivery market within the European Union.

DEVELOPING CRITICAL AND LOGICAL THINKING SKILLS FOR BANKING PROFESSIONALS: CHALLENGES OF THE INFORMATION AGE

Alexey (Oleksii) Aleksandrov — Fri, 21 Nov 2025 00:00:00 +0000

The modern era of digital transformation and information overload (Industry 4.0 and Industry 5.0) creates unprecedented challenges for banking sector professionals. The exponential growth of information volumes, spread of misinformation (manipulation), increasing complexity of financial instruments, and high level of market regulation demand that banking professionals develop strong critical and logical thinking skills. This study analyses key risks in the modern educational process for banking, including information overload, declining ability for deep analysis, and vulnerability to manipulative techniques. The systematic development of critical and logical thinking skills is essentially a strategic imperative for financial organizations and the government institutions that regulate them. A possible response (though not a panacea) could be implementing a comprehensive methodology for developing critical thinking, including practical tools for information verification, logical analysis techniques, and protection against cognitive biases. Special attention should be paid to specific risks in the banking sector related to making financial decisions under conditions of uncertainty and information asymmetry.

THE IMPACT OF BOARD MEMBERS’ EDUCATIONAL LEVEL ON THE PROSPECTS OF SUCCESSFUL DEVELOPMENT OF SMALL BUSINESS ENTREPRENEURSHIP

Elena Sventitskaya, Galina Reshina — Fri, 21 Nov 2025 00:00:00 +0000

This article examines the influence of the educational level of board members on the success of small business development. Based on the analysis of theoretical approaches and empirical data from EU countries and Latvia, the study reveals how the education of executives affects strategic planning, innovation activity, and business sustainability. The findings highlight the necessity of enhancing the educational potential of managerial staff to ensure the competitiveness of small enterprises.

YOUTH READINESS FOR AI-DRIVEN HR PRACTICES IN THE BALTIC STATES: A COMPARATIVE STUDY

Veranika Khlud, Galina Reshina — Fri, 21 Nov 2025 00:00:00 +0000

This study explores youth readiness for artificial intelligence (AI) applications in human resource (HR) and recruitment practices in Estonia, Latvia, and Lithuania. Based on a cross-country survey and qualitative interviews with individuals aged 18 to 30, the research examines digital competence, exposure to AI tools, and attitudes toward AI in hiring. The findings reveal significant differences across the Baltic states. Estonian youth demonstrate the highest readiness, supported by strong digital education and national AI initiatives. Lithuanian respondents show active use of AI in learning but report moderate institutional support. Latvian participants express interest in AI but indicate limited access and lower digital confidence. While most respondents view AI as a useful and efficient tool in HR, concerns remain regarding data transparency and fairness. The study offers evidence-based recommendations to support the integration of AI in education and employment services, aiming to improve youth adaptability to future AI-driven labour markets.