Although the global population continues to grow, almost all developed countries, including Latvia, are seeing a decline in population and an overall ageing of society. Despite the economic growth experienced over the last 30 years, Latvia's population has decreased by approximately 1% per year during this same period, which has long placed Latvia among the five fastest-shrinking countries in the world.

Changes in population are driven by natural increase (the difference between the number of births and deaths) and net migration (the difference between incoming and outgoing residents). According to international research, these indicators are most influenced by each individual's personal context – the desire to start a family, health status, employment opportunities, lifestyle, hobbies, and other aspects. However, in practice, it is evident that Latvian policymakers mostly focus on increasing benefits rather than researching and addressing this individual context. (...)

(...) In conducting research into the sustainable development strategies of Latvian municipalities in force over the last 10 years, I concluded that:

• More than half of the municipalities had set goals that were inconsistent with their actual situation (for example, after a 20-year decline in population, the goal planned was to "increase the population");

• In those municipalities that based their strategic goals on an "Acceptance" approach (for example, by setting the personal growth of each resident as the strategic overarching goal), the risk of depopulation has grown relatively more slowly;
• Depopulation is triggered by factors such as the population base, trends in population change, and age structure – at the level of each municipality, it is possible to identify which of these aspects creates depopulation risks and plan corresponding risk-mitigation activities, which can also be supported by state policy instruments.

The decline in population can be called Latvia's biggest problem and challenge. Uncontrolled depopulation can have long-term negative consequences for the country's development and security. However, international experience shows that the problem can be solved in the long term if all its causes are identified – both economic and non-economic. By summarising foreign examples and the reasons for population changes in Latvia, three strategic directions for maintaining and stabilising the population emerge, which can be applied at both the national and municipal levels:

Firstly, skills and productivity – the vision for the future of Latvia and its municipalities must be based on human skills, as every sector is experiencing increasingly rapid changes due to global trends, including digitalisation, adaptation to climate change, and other factors. In such circumstances, it is crucial for every resident and business to be able to achieve their employment and business goals within their local municipality. (...)