Estonian economic miracle
Estonia is one of the most succesfull transition countries. From absolute misery in 1992 we have moved significantly nearer to the average European living standards in 2007, passing soon the first Western-European country – Portugal. Lot of people have asked from me how we did it. I tried to explaine this in my lecture in Heritage Foundation some weeks ago. When You are interested in it, You can read it from Heritage homepage. To put is shortly – most important is to cut yourself from communist past. When You can do this, you will be succesfull.
Estonian blog you wrote about alternative fuel. Are you using bioethanol Saab now? Bioethanol cars use 1/3 more fuel. Why arent you promoting gas cars. In holland and Italy gas fuel cars are popular and its nature friendly. Even in Lithuania gas is used a lot. In Tallinn there are only 1 Gas station . Was 2 , but Järve neste was removed and so Gas station.
Dear Mart,
Alot of success can be attributed to the culture and hard work of Estonians.
As to communist past. In Europe with exception of Scandinavian countries most people see Estonia as post USSR, East European country. When will government start promoting Estonia? A few pages in fortune magazine, etc.
Perhaps Dr Ariel Cohen from Heritage Foundation could post a short comment here?
Regards,
Igavald.
Dear Mart,
As a danish citizen living in Estonia I was in the beginning very impressed
by the simple Estonian tax system. In Denmark we are competing with Sweeden
to have the highest tax level in EU. A 22% flat tax rate is impressing.
But a not so well know part of the story is a 33% flat additional
“social tax”. In my mind the resulting flat 55% tax level (higher than both
Denmark and Sweeden!?) is very high tax level for low skilled workers etc.
Are the rich people (owning the factories) and driving BMW also
paying 55% in total taxes (of total income) -or is it only the busdriver
and the school-teacher. I have very deep respect for the amazing results
regarding total growth in the Estonian economy. But I think you have a
need to implement some elements from the Scandinavian wellfare model.
In my mind economical growth does not automatically result in average
population having higher living standards.
Regards,
Kristian