The purpose of this article is to outline relevant problems and solutions for the optimisation of policy coordination in Latvia. Such research methods as document analysis and a survey of officials responsible for policy planning and implementations in the ministries were used. The novelty is the evaluation of the decision to establish a central policy coordination unit in context with theoretical aspects of policy coordination and foreign experience. Authors conclude that policy coordination is not an all or nothing matter and it is possible to implement large ambitions only when the capacity of policy coordination is sufficiently developed. Therefore the policy coordination capacity in Latvia should be improved gradually. Latvia could strengthen policy coordination capacities in particular areas of government that are crucially important for the development. Also the culture of cooperation should be facilitated by creating formal and informal network between the ministries, as well as by emphasising the values that promote serving the collective interests of government.