The global economic crisis that hit all the national economies in the EU area stimulated the need for new approaches in the planning and implementation of regional development policy. This paper investigates the debates about the role of the city of Riga and its development potential as the biggest city in Latvia, whilst also looking at the challenges and opportunities created by the need to respond to global changes. The article discusses the relevance of certain factors and demonstrates the actions taken by national authorities to promote the more balanced development of Latvia, as well as the opportunities to apply a place-based approach in promoting the development of Riga as the capital city of Latvia.