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The President of the Republic at the Successful Development of Estonia Forum on November 28, 2001, at the Sakala Centre
28.11.2001


Dear participants of the forum!
Ladies and gentlemen!

It is an honour and a pleasure for me to open a forum postulating the successful development of Estonia. This is as it should be, because we restored our independence in the firm belief that when free to act and decide, we can do more and better, that as an independent state and an independent nation, we can truly realise and prove our worth. Today, ten years later, we have reasons to state that we have passed the first stage of transition with vigour and courage, and been prepared to take risks. And our efforts have been rewarded with success, even if we have gained it at high price and even if the whole nation cannot yet partake of it.

In ten years, Estonia's economic life has changed beyond recognition: the centralised planned economy has been replaced with open market economy. Considering our possibilities and capabilities at the time, the Republic of Estonia, having restored her independence, created almost maximum favourable conditions for the development of private entrepreneurship: currency system based on national currency board, decisive privatisation of state-owned enterprises, considerably lower taxes when compared to the developed countries of the West, the sympathy and support to the private sector from both legislative and executive power. This has, among other things, resulted in a fact that Estonia's economic environment today is one of the most liberal in the world. We have also proved that our enterprises are able to compete on the world market. On our scale of values, enterprising spirit has risen almost to the top and become the first criterion of success. With surprise, we observe that in addition to the generations of the 1960s and 1970s, etc, Estonia also has a generation of enterprising people, who have realised this potential of development into the future opportunities of Estonia.

Mobility and flexibility have been the characteristic features of the Estonian business elite. These qualities are important to attain success, especially considering that when our opportunities opened up here, the world economy was just globalising and the post-industrial paradigm in economy was being replaced with the information technology paradigm. Therefore it is understandable that at that stage, mostly extensive development factors, such as extremely liberal economic conditions and open economic space, were utilised.

And yet it is positively so that for a small nation and a small country like Estonia, extensive model of development can only be applied during a limited period of time, which should be used for the transition to the intensive and at the same time sustainable, society-focused development model. In Estonia, the most important development resource - people - is limited, and unfortunately diminishing. Many scientists and also some politicians have for some time been warning the public about serious demographic problems, which are indeed common in Western Europe, but especially poignant in our case. If we continue like this, in 50 years we will be facing a serious shortage of taxpayers - whether entrepreneurs or employed, to say nothing of a healthy nation and the sustainability that should characterise it.

Therefore, I dare say that in the ever-complicating economic conditions of the world, the way in which we will be able to utilise the inner potential of our society will become the most important factor for Estonia. The possibility for the whole society to perceive our success must become one of the preconditions of development. So, it is a question of social solidarity - the principle that is an essential characteristic of our northern and western neighbours, one example of it being the so-called labour peace - long-term agreements between the employer and the employed, and also certain redistribution of social wealth to ensure the continuous existence and the future of human resources. This solidarity could be expressed for instance in launching an extensive retraining system, for which close co-operation between the state and the private sector are necessary. And we already have one example of this, the Information Technology College. Also the considerable improvement of infrastructure in the districts that are still the periphery in today's Estonia, but could provide important support in ensuring the sustainability of Estonia's economy. For that reason, it is important how we implement the administrative reform - will it favour independent decisions and responsibility, or will the farther corners of our country still remain dependent on the providence of the state.

Also the fast and high concentration of the economy is eventually no guarantee of success, because the attendant strain to the human and natural environment and also pollution may, in the worst case, prove to be an existential problem for the future generations. Small and medium-sized enterprises may prove to be a much more suitable and sustainable form of economic activity.

Thus, in the interest of us, our children and all the future generations, we must now and again redefine success and find new ways and means to attain it. And this must not be done only on highly qualified forums, but also in the whole society.

In politics, we talk about national contracts and the application of the principle of consensus in deciding the issues that are important to the state and the nation. The development and success of Estonia's economy are certainly important and crucial matters, to be surrounded by extensive discussions and understanding.

The reason for this is that we must avoid the false idea that our successful development only depends on economy, and deepen the understanding that it first and foremost depends on human beings, and that human beings are the goal that economic success must serve.

Have a fruitful think-tank!


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