Riga was founded in 1201 by German crusaders. Before then, a village of merchants and sailors existed where Old Town now sits. The Livs were one of several nations that resided in the territory now known as Latvia. At the beginning of the 13th century, international trading opportunities grew rapidly. Riga joined the Hanseatic League, Europe's first common market. At its height in the 14th and 15th centuries the Hanseatic League was as powerful as any monarchy in Europe, and Riga thrived. The houses in Old Town and the city centre remind us of this period of major German cultural influence. Riga is the capital of Latvia, and a major commercial and cultural centre with a population of 735000 in 2006. Over the last decade, Riga's buildings are being modernized. Gradually Riga has converted itself into a modern European city, as well as a centre of various cultural and sporting events. In 2002, Riga rang in its 800th year anniversary as a separate entity in fine style, offering both traditional and modern festivities as the entire city celebrated for many days. In 2006, Riga, Latvia hosted the Hockey World Championship, an event which most Latvians adore.
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