The economy wasn't dealt with properly and didn't diversify enough. It is incredible to turn this into some sort of failed state. Even more unbelievable is to compare Latvia to lawless countries like those in latin america or in Africa.
There is no sense whatsoever in being so gloomy and announcing the end of the world when the national economy is facing problems. Latvia isn't the first to have difficulties or to be bankrupt, nor will it be the last.