In the case of Latvia, once its economy had reached a point in which it was no longer spiraling the way it was in the middle of the past decade, the country could being to implement measures to boost it. This included addressing the issue of the rate of employment and the rate of emigration, which was largely a result of the process of the fiscal compactor. As such, Latvia was able to continue its financial recovery by concentrating on industrial production and building favorable trade while exporting its services. The article contributed significantly to the understanding of the notions of a fiscal compactor as well as to frontloading. The way in which its help was most efficacious was through the comparison that the prime minister set up between Latvia and Greece. Greece has been in the headlines of late for having substantial monetary problems at the national level. What is significant about this fact is that Greece's financial woes occurred at approximately the same time that Latvia's national economy suffered at well. Dombrovskis alluded to the effectiveness of both frontloading and the use of a fiscal compactor suggesting that Greece also attempted to internally evaluate its prices and wages, yet did not make the necessary adjustments as early as Latvia did. Essentially, Greece did not choose to frontload the ramifications of the analysis of its budgetary discipline...

Since Greece postponed its financial adjustment, it is still plagued by economic issues, whereas Latvia is one of the more successful European countries today -- particularly of those who were badly subjected to the international fiscal crisis at the end of the last decade. The lesson learned from frontloading and stabilizing a national economy through the means of a fiscal compactor are quite obvious, and well demonstrated in Dombrovskis' interview.
Lastly, it is also significant that Latvia was able to emerge from its frontloading experience fairy readily, approximately a year after its initial suffering from the economic crisis, by improving is gross domestic product. The alacrity that the nation displayed is a large part of the frontloading experience. Additionally, its current emphasis on establishing a favorable balance of trade through the exportation of industrial production also indicates the prudence of adopting the aforementioned pair of measures. Greece is still looking for aid, while Latvia is looking to aid others.

References

No author. (2012). "Lessons from Latvia: a Baltic bounce-back." The Economist. Retrieved from http://www.economist.com/blogs/charlemagne/2012/06/lessons-latvia