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Neoliberal Austerity and Corporate Crime: The Collapse of the Maxima Supermarket in Riga, Latvia

The roof collapse of the Maxima supermarket in Riga, Latvia on November 21, 2013 left 54 dead. This analysis identifies the disaster as a “safety crime.” Neoliberal deregulatory measures, intensified by the global economic and financial crisis and a programme of radical austerity, together with corporate and state disregard of public safety and well-being, combined to produce the disaster. The wider context and underlying causes of catastrophic safety failure exemplify the inherently contradictory character of the neoliberal “Baltic model” of austerity, recently much in vogue with international policymakers in both Europe and the United States. The authors conclude that the current renewed drive by the European Commission towards reducing regulation for business, especially in the aftermath of the crisis, further justifies longstanding anti-regulatory preferences of neoliberal domestic elites, with the result that the costs of disregard for public safety are externalized onto the general populace.