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The chapter provides analysis of obstacles for the introduction of direct citizen participation in the decision-making process at the local self-governments in Latvia, as well as intents of national government to widen participative democracy by formalization of consultation mechanisms. Within the scope of this study, participation is seen as an interaction form of relationship between citizens and a local government. The highest form, according to Arnstein's gradation theory of a ladder of citizen participation, refers to the participation degree called partnership, delegated power, and is described by Teorell as a citizen voice in the government. Situation and perspective of local government referendums are analysed. Consultation is implemented at the level by involving the residents in the work of local government commissions and implementing public deliberations. Administrative territorial reform, performed by 2021 elections, will decrease the number of local governments to a third of their current level.

The aim of the paper is to analyse the factors influencing the citizen participation in activities of local governments in relation to quality of life in Latvia. The use of the CLEAR model, elaborated by a group of British researchers under guidance of Gerry Stoker, shows the possibilities of participation and engagement of citizens based on theoretical aspects. Latvia, as a member state of the EU, needs to develop and to involve more citizens in different social activities, since it has comparatively small experience in democratic processes due to its past of 50 years being a part of another country — the Soviet Union. The opportunities to participate in the European Parliament’s election and to promote the resolution of common issues or questions specific for the country can be one of the ways for expressing life priorities. Historical heritage is still influencing the priorities of population, such as changes in income level and possibilities to increase the quality of life, have a strong impact on the perception of citizens. By using the concept of a welfare state and a welfare economy, it is possible to explain the enlargement of areas of citizens’ interaction. Unbalanced regional development with a huge impact on the capital city in the national economy and in the number of inhabitants concentrated in Rīga that amounts to a third of the total population with important differences in income level and quality of life has profound influence on other regions and the interests of inhabitants to participate in local governmental activities. The factors, which affect this engagement, are analysed by using primary and secondary data. The main conclusions are: 1) there is more active citizens participating in the activities of local government than in the election of the European Parliament due to faster and more visible results in solving problems, 2) the global financial crisis strongly affected the participation level, the changes of economic conjuncture have an important impact on the participation of citizens 3) imbalance in regional development is reflected by the level of participation, since there is a higher level of participation in economically favourable regions.

Low public trust in public power institutions is still an urgent problem among the Member States of the European Union.According to the latest Standard Eurobarometer 80 data, the trust continues decreasing. In Latvia trust indicators are also markedly low -17% residents of Latvia trust in the national parliament, 21% -in the government, but the indicator of trust in political parties is explicitly critical -it constitutes only 6%. Since the Eurobarometer research only includes citizens' opinion, we can assume that the trust indicators are even lower.The population of Latvia consists of the Latvians, who are the titular nation -59.6%, the Russians -27% and other national minorities, for instance, the Ukrainians and the Byelorussians. The issue of the integration of the Russian speaking people has been topical in Latvia since the mid 90ties, however, as a result of the unsuccessful integration policy, there is still an alarming number of non-citizens in Latvia, which, according to the Office of Citizenship and Migration Affairs of Latvia data, in 2012 constituted 17% of the population of Latvia and which is the third highest indicator in the European Union.Democracy in Latvia can only function well when all residents of Latvia, regardless of their ethnicity, undertake the responsibility for their country and participate in the public and local government administration. Therefore this publication aims at researching whether the indicators of public trust and participation differ, depending on the ethnicity of residents in Latvia. The authors also wanted to find out whether the issue of ethnicity has vital importance with regard to the improvement of public trust and participation in Latvia.The research is based on the public opinion poll that was conducted by the authors and the Marketing and Public Opinion Research Centre (SKDS) in Latvia in July 2012. In order to elaborate the research design, a case study method has been used. The data analysis methods, such as the grouping of statistical data and their depiction in tables and document analysis, have been used.The research results show that the trust in national level institutions is affected by different factors, including the ethnicity issue. The acquired research data in correlation with the nationality structure in statistical regions acquired in 2011 Population Census process in Latvia, affirm already mentioned conclusion, than public power institutions in Latvia (data of the Central statistical Bureau of Latvia) are more positively evaluated by respondents in regions with most number of Latvians, i.e. Vidzeme region (87% Latvians), Kurzeme region (76% Latvians).

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