development and deliberate fiscal policy on the national level. Special attention must be directed towards combating measures for shadow economy and improvement of taxation process by systematically identifying and evaluating tax evasion risks, as well as introducing relevant control measures. It is important to increase the capacity of the law enforcement agencies and corruption prevention and combating institutions in order to be able to identify, investigate, and solve financial crimes and corporate schemes; it is also important to increase the efficiency of the judicial system in order to achieve faster adjudication of cases. It is necessary to improve monitoring capacity of the financial sector in order to prevent money laundering. To establish a long-term economic growth, it s very important to be able to use qualified workforce, science and innovations in the business development when developing projects that are guided towards production with high added value. Special attention must be directed towards the development of business initiative in the regions of the Republic of Latvia. In order to achieve these goals, it is necessary to invest in high-quality education, workforce training, development of science and research, as well as the cooperation between scientist and entrepreneurs must be promoted. These goals can be reached by providing additional funds from the state budget, as well as the EU Structural Funds. External Economic Policy and Control of Foreign Investment Considering the economic connection between economy and various international and regional processes and the necessity to in due time respond to different changes in the economic environment, the Republic of Latvia has to establish an effective access to the decision making processes and protection measures of economic interests within the framework of international and regional organisations. In this context, it is important to continue the protection of national interests in the framework of the World Trade Organisation and EU. Developing the external economic policy of the Republic of Latvia, it is important to promote investment attraction and diversification of export markets. Recession of the economy of the Russian Federation, as well as its response to the economic sanctions declared by EU, pressure many Latvian businesses, especially those within the food industry, to explore new export markets in order to realise their products. In order to provide support for the entrepreneurs in searches for new markets, the Republic of Latvia has to continue to coordinate its external economic policy, extend the embassy network, and maintain a positive international image of Latvia.