Estonia, officially the Republic
of Estonia (Estonian: Eesti or Eesti Vabariik) is a country in Northern
Europe. Estonia has land borders to the south with Latvia and to
the east with Russia. It is separated from Finland in the north
by the Gulf of Finland and from Sweden in the west by the Baltic
Sea.
Estonia has been a member of the European Union since 1 May 2004
and of NATO since 29 March 2004.
The Estonians are a Finnic people closely related to the Finns,
with the Estonian language sharing many similarities to Finnish.
The modern name of Estonia is thought to originate from the Roman
historian Tacitus, who in his book Germania (ca. AD 98) described
a people called the Aestii. Similarly, ancient Scandinavian sagas
refer to a land called Eistland. Early Latin and other ancient versions
of the country's name are Estia and Hestia.
Contents [hide]
1 History
1.1 Prehistory
1.2 Middle Ages
1.3 The Reformation period
1.4 Estonia in the Russian Empire
1.5 Road to republic
1.6 World War II
1.6.1 Soviet occupation and annexation
1.6.2 German occupation
1.6.3 Soviet occupation
1.7 Return to independence
1.8 Foreign policy since regaining independence
2 Politics
3 Counties and municipalities
3.1 Counties
3.2 Smaller divisions
4 Geography
4.1 Topography
4.2 Climate
5 Economy
5.1 General situation
5.2 Exports
5.3 Imports
6 Demographics
6.1 Ethnicity
6.2 Citizenship issues
6.3 Law on Cultural Autonomies
6.4 Religion
7 International rankings
8 See also
8.1 Culture
9 Further reading
10 Notes and references
11 External links
11.1 Government
11.2 History
11.3 Tourism
11.4 Culture
11.5 Overviews
11.6 News
[edit] History
Main article: History of Estonia
[edit] Prehistory
Main article: Ancient Estonia
Human settlement in Estonia became possible 11,000 to 13,000 years
ago, when the ice from the last glacial era melted away. The oldest
known settlement in Estonia is the Pulli settlement, which was located
on the banks of the river Pärnu, near the town of Sindi, in
southern Estonia. According to radiocarbon dating, it was settled
around 11,000 years ago, at the beginning of the ninth millennium
BC.
Evidence has been found of hunting and fishing communities existing
around 6500 BC near the town of Kunda in northern Estonia. Bone
and stone artifacts similar to those found at Kunda have been discovered
elsewhere in Estonia, as well as in Latvia, northern Lithuania and
in southern Finland. The Kunda culture belongs to the middle stone
age, or Mesolithic period.
The end of the Bronze Age and the early Iron Age were marked by
great cultural changes. The most significant was the transition
to farming, which has remained at the core of Estonian economy and
culture. From approximately the first to fifth centuries AD, resident
farming was widely established, the population grew, and settlement
expanded. Cultural influences from the Roman Empire reached Estonia,
and this era is therefore also known as the Roman Iron Age.
A more troubled and war-ridden middle Iron Age followed with external
dangers coming both from the Baltic tribes, who attacked across
the southern land border, and from overseas. Several Scandinavian
sagas refer to campaigns against Estonia. Estonian pirates conducted
similar raids in the Viking age and sacked and burned the Swedish
town of Sigtuna in 1187.[1]
In the first centuries AD political and administrative subdivisions
began to emerge in Estonia. Two larger subdivisions appeared: the
province (provincia, Estonian kihelkond) and the land (terra, Estonian
maakond). The province consisted of several elderships or villages.
Nearly all provinces had at least one fortress. The defense of the
local area was directed by the highest official, the king, prince
or elder. The terra was composed of one or several provinces, also
headed by an elder, king, prince or their collegium. By the 13th
century the following major lands had developed in Estonia: Saaremaa
(Osilia), Läänemaa (Rotalia or Maritima), Harjumaa (Harria),
Rävala (Revalia), Virumaa (Vironia), Järvamaa (Jervia),
Sakala (Saccala), and Ugandi (Ugaunia).[2]
Estonia retained a pagan religion centered around a deity called
Tharapita.
[edit] Middle Ages
Estonia in Livonian Confederation from 1228 to the 1560s.
Estonia was Christianized when the German "Livonian Brothers
of the Sword" conquered southern Estonia as part of the Northern
Crusades in the early thirteenth century. At the same time, Denmark
attempted to take possession of northern Estonia. Estonia was consolidated
under the two forces by 1227. Northern Estonia remained a possession
of Denmark until 1346. Reval (known as Tallinn since 1918) was given
its Lübeck Rights in 1248 and joined an alliance of trading
guilds called the Hanseatic League at the end of the thirteenth
century. In 1343, the people of northern Estonia and Saaremaa rebelled
against German rule in the St. George's Night Uprising, which was
put down by 1344.
There were unsuccessful Russian invasions in 1481 and 1558.
[edit] The Reformation period
Kuressaare castleThe Reformation in Europe officially began in 1517
with Martin Luther (1483-1546) and his 95 Theses.
The Reformation resulted in great change in the Baltic. Ideas entered
the Livonian Confederation very quickly and by the 1520s they were
well known. Language, education, religion, and politics were greatly
transformed. The Church services were now given in the local vernacular,
instead of Latin, as was previously used. [3]
During the Livonian War in 1561, northern Estonia submitted to
Swedish control, while southern Estonia briefly came under the control
of Polish-Lithuanian Commonwealth in the 1580s. In 1625, mainland
Estonia came entirely under Swedish rule. Estonia was administratively
divided between the provinces of Estonia in the north and Livonia
in southern Estonia and northern Latvia, a division which persisted
until the early twentieth century.
In 1631, the Swedish king Gustaf II Adolf, aka Gustavus Adolphus,
forced the nobility to grant the peasantry greater rights, although
serfdom was retained. In 1632 a printing press and university were
established in the city of Dorpat (known as Tartu since 1918). This
period is known in Estonian history as "the Good Old Swedish
Time."
[edit] Estonia in the Russian Empire
Following the Great Northern War, the Swedish empire lost Estonia
to Russia (1710 de facto, and 1721 de jure, by the Treaty of Nystad).
However, the upper classes and the higher middle class remained
primarily Baltic German. The war devastated the population of Estonia,
but it recovered quickly. Although the rights of peasants were initially
weakened, serfdom was abolished in 1816 in the province of Estonia
and in 1819 in Livonia.
[edit] Road to republic
As a result of the abolition of serfdom and the availability of
education to the native Estonian-speaking population, an active
Estonian nationalist movement developed in the nineteenth century.
It began on a cultural level, resulting in the establishment of
Estonian language literature, theatre and professional music and
led into the formation of the Estonian national identity and late
1800s' Age of Awakening. Among the leaders of the movement were
Johann Voldemar Jannsen, Jakob Hurt and Carl Robert Jakobson. Significant
accomplishments were the publication of the national epic, Kalevipoeg,
in 1862, and the organization of the first national song festival
in 1869.
In response to a period of Russification initiated by the Russian
empire in the 1890s, Estonian nationalism took on more political
tones, with intellectuals first calling for greater autonomy, and
later, complete independence from the Russian empire. Following
the Bolshevik takeover of power in Russia after the October Revolution
of 1917 and German victories against the Russian army, between the
Russian Red Army's retreat and the arrival of advancing German troops,
the Committee of Elders of the Maapäev issued the Estonian
Declaration of Independence [4] in Pärnu on February 24, 1918.
After winning the Estonian Liberation War against Soviet Russia
and at the same time German Freikorps volunteers (the Tartu Peace
Treaty was signed on 2 February 1920), Estonia maintained its independence
for twenty-two years. Initially a parliamentary democracy, the parliament
(Riigikogu) was disbanded in 1934, following political unrest caused
by the global economic crisis. Subsequently the country was ruled
by decree by Konstantin Päts, who became President in 1938,
the year parliamentary elections resumed.
[edit] World War II
Main article: Estonia in World War II
[edit] Soviet occupation and annexation
Estonia was occupied by the Soviet Union in June 1940,[5][6] after
Stalin gained Hitler's agreement to divide Eastern Europe into "spheres
of special interest" according to the Molotov-Ribbentrop Pact
and its secret protocol.[7] On September 24, 1939, warships of the
Red Navy appeared off Estonian ports and Soviet bombers began a
patrol over Tallinn and the nearby countryside.[8] The Estonian
government was forced to give their assent to an agreement which
allowed the USSR to establish military bases and station 25,000
troops on Estonian soil for "mutual defence".[9]
On June 12, 1940, the order for a total military blockade on Estonia
was given to the Soviet Baltic Fleet.[10][11]
On June 14, 1940, while world’s attention was focused on
the fall of Paris to Nazi Germany a day earlier, the Soviet military
blockade on Estonia went into effect, two Soviet bombers downed
a Finnish passenger airplane "Kaleva" flying from Tallinn
to Helsinki carrying three diplomatic pouches from the U.S. legations
in Tallinn, Riga and Helsinki.[12]
On June 16, 1940, the Soviet Union invaded Estonia.[13] The Red
Army exited from their military bases in Estonia on June 17.[14]
The following day, some 90,000 additional troops entered the country.
On June 17, 1940, The Estonian government decided, given the overwhelming
Soviet force, not to resist, to avoid bloodshed and open war.[15]
The military occupation of Estonia was complete by the June 21 1940.[16]
Most of the Estonian Defence Forces and the Estonian Defence League
surrendered according to the orders believing that resistance was
useless and were disarmed by the Red Army. Only the Estonian Single
Signal Battalion stationed in Tallinn at Raua Street showed resistance.
As the Red Army brought in additional reinforcements supported by
six armoured fighting vehicles, the battle lasted several hours
until sundown. There was one dead, several wounded on the Estonian
side and about 10 killed and more wounded on the Soviet side. Finally
the military resistance was ended with negotiations and the Single
Signal Battalion surrendered and was disarmed.[17]
In August 1940, Estonia was formally annexed by the Soviet Union
as the Estonian SSR. Those who had fallen short of the "political
duty" of voting Estonia into the USSR, who had failed to have
their passports stamped for so voting were allowed to be shot in
the back of the head by Soviet tribunals.[18] The repressions followed
with the mass deportations carried out by the Soviets in Estonia
on June 14, 1941. Many of the country's political and intellectual
leaders were killed or deported to remote areas of the USSR by the
Soviet authorities in 1940-1941. Repressive actions were also taken
against thousands of ordinary people.
When the German Operation Barbarossa started against the Soviet
Union, about 34,000 young Estonian men were forcibly drafted into
the Red Army. Less than 30% of them survived the war. Political
prisoners who could not be evacuated were executed by the NKVD.[19]
Many countries including the United States did not recognize the
seizure of Estonia by the USSR. Such countries recognized Estonian
diplomats and consuls who still functioned in many countries in
the name of their former governments. The aging diplomats persisted
in this anomalous situation until the ultimate restoration of Baltic
independence.[20]
Contemporary Russian politicians, however, deny that the Republic
of Estonia was illegally annexed by the Soviet Union in 1940. They
state that the Soviet troops had entered Estonia in 1940 following
the agreements and with the consent of the government of the Republic
of Estonia, regardless of how their actions can be interpreted today.
They maintain that the USSR was not in a state of war and was not
waging any combat activities on the territory of Estonia, therefore
there can be no talk about 'occupation'. The official position of
Russia is a refusal to recognize the fact of Estonia's occupation
and claims that Estonians decided to lose their statehood voluntarily
and officially describes separatist fighters of 1944-1953 as "bandits"
or "nazis". The Russian position is not recognized internationally.[21][22]
[edit] German occupation
Main article: Occupation of Estonia by Nazi Germany
Subsequently, the country was occupied by Nazi Germany from 1941
to 1944. Although initially the Germans were perceived as liberators
from the USSR and its repressions by most Estonians, who hoped for
the restoration of the country's independence, it was soon realized
that they were but another occupying power. Germans pillaged the
country for the war effort and unleashed the Holocaust. Estonia
was incorporated into the German province of Ostland. That made
many Estonians not willing to side with the Nazis join the Finnish
army to fight against the Soviet Union. Finnish Infantry Regiment
200 AKA (Estonian: soomepoisid) was formed out of Estonian volunteers
in Finland. Many Estonians were recruited in to the German armed
forces (including Waffen-SS), the majority did so only in 1944 when
the threat of a new invasion of Estonia by the Red Army had become
imminent and it was clear that Germany would not win the war.[23]
By January 1944, the front was pushed back by the Soviet Army almost
all the way to the former Estonian border. Narva was evacuated.
Jüri Uluots, the last legitimate prime minister of the Republic
of Estonia (according to the Constitution of the Republic of Estonia)
prior to its fall to the Soviet Union in 1940, delivered a radio
address that implored all able-bodied men born from 1904 through
1923 to report for military service (Before this, Uluots had opposed
Estonian mobilization.) The call drew support from all across the
country: 38,000 volunteers jammed registration centers.[24] Several
thousand Estonians who had joined the Finnish army came back across
the Gulf of Finland to join the newly formed Territorial Defense
Force, assigned to defend Estonia against the Soviet advance. It
was hoped that by engaging in such a war Estonia would be able to
attract Western support for the cause of Estonia's independence
from the USSR and thus ultimately succeed in achieving independence.[25]
[edit] Soviet occupation
Main article: Estonian SSR
Soviet forces reconquered Estonia in the autumn of 1944 after fierce
battles in the northeast of the country on the Narva river and on
the Tannenberg Line (Sinimäed). In the face of the country
being re-occupied by the Red Army, tens of thousands of people chose
to either retreat together with the Germans or flee to Finland or
Sweden, becoming war refugees and later, expatriates.[citation needed]
In addition to the human and material losses suffered due to war,
thousands of civilians were killed and tens of thousands of people
deported from Estonia by the Soviet authorities until Joseph Stalin's
death in 1953.
In 1949, in response to slow progress in forming collective farms,
about 20,000 people were forcibly deported over a few days either
to labor camps or Siberia (see Gulag).[26] Within the few weeks
that followed, almost all of the remaining rural households had
been subjected to collectivisation.(ibid)
Half of the deported perished;[27] the other half were not allowed
to return until the early 1960s (several years after Stalin's death).[citation
needed] That and previous repressions in 1940-1941 sparked a guerrilla
war against the Soviet authorities in Estonia which was waged into
the early 1950s by the so called "forest brothers" (metsavennad)
consisting mostly of Estonian veterans of both the German and Finnish
armies as well as some civilians.
Western bank of Osmussaar islandMaterial damage caused by the world
war and the following Soviet planned economy significantly slowed
Estonia's economic growth, resulting in a wide wealth gap in comparison
with neighboring Finland and Sweden.[28]
Militarization was another aspect of the Soviet regime. Large parts
of the country, especially the coastal areas were restricted to
anyone but the Soviet military.[citation needed] Most of the sea
shore and all sea islands (including Saaremaa and Hiiumaa) were
declared "border zones". People not directly living there
were restricted from traveling to them without a permit and were
punished if they did so. A notable closed military installation
was the city of Paldiski which was entirely closed to all public
access.[citation needed] The city had a support base for the Soviet
Baltic Fleet's submarines and several large military bases, including
a nuclear submarine training centre complete with a full-scale model
of a nuclear submarine with working nuclear reactors. The reactor
building passed to Estonian control a year after the Soviet troops
left.
Population transfer was another effect of Soviet occupation. Hundreds
of thousands of migrants were relocated to Estonia from other parts
of Soviet Union to conduct industrialization and militarization,
contributing an increase of about half million people to within
45 years.[29] The immigrants stayed on to form part of the population.
By 1980, when Olympic Regatta of the 1980 Olympic Games was held
in Tallinn, russification and migration had achieved a level at
which it started sparking popular protests.[citation needed]
[edit] Return to independence
The United States, United Kingdom and the majority of other western
democracies considered the annexation of Estonia by USSR illegal.
They retained diplomatic relations with the representatives of the
independent Republic of Estonia, never recognized the existence
of the Estonian SSR de jure, and never recognized Estonia as a legal
constituent part of the Soviet Union.[30] Estonia's return to independence
became possible as the Soviet Union ran into economic difficulties
as a consequence of the Cold War and began to disintegrate. As the
situation evolved, a movement for more Estonian self-governance
started. In the initial period of 1987-1989, this was partially
for more economic independence, but as the Soviet Union weakened
and it became increasingly obvious that nothing short of full independence
would do, the country began a course towards self-determination.
In 1989, during the "Singing Revolution", in a landmark
demonstration for more independence, called The Baltic Way, a human
chain of more than two million people was formed, stretching through
Lithuania, Latvia and Estonia. Both Lithuania and Latvia had similar
fates of occupation and similar aspirations for regaining independence
as Estonia.
Estonia formally declared regained independence on August 20, 1991,
during the Soviet military coup attempt in Moscow. The first country
to diplomatically recognize Estonia's reclaimed independence was
Iceland
The last Russian troops left on 31 August 1994. Estonia joined
NATO on 29 March 2004 and the European Union on 1 May 2004.
[edit] Foreign policy since regaining independence
Since regaining independence, Estonia has pursued a foreign policy
of close cooperation with its Western European neighbors. The two
most important policy objectives in this regard have been accession
into NATO and the European Union, achieved in March and May of 2004
respectively. Estonia's international realignment toward the West
has been accompanied by a general deterioration in relations with
Russia, most recently demonstrated by the controversy surrounding
relocation of the Bronze Soldier WWII memorial in Tallinn.[31]
An important element in Estonia's post-independence reorientation
has been closer ties with the Nordic countries, especially Finland
and Sweden. Indeed, Estonians consider themselves a Nordic people
rather than Balts,[32][33] based on their linguistic, cultural and
historical ties with Sweden, Denmark and particularly Finland. In
December 1999 Estonian foreign minister (and since 2006, president
of Estonia) Toomas Hendrik Ilves delivered a speech entitled "Estonia
as a Nordic Country" to the Swedish Institute for International
Affairs.[34] In 2003, the foreign ministry also hosted an exhibit
called "Estonia: Nordic with a Twist".[35] And in 2005,
Estonia joined the European Union's Nordic Battle Group. It has
also shown continued interest in joining the Nordic Council.
Whereas in 1992 Russia accounted for 92% of Estonia's international
trade,[36] today there is extensive economic interdependence between
Estonia and its Nordic neighbors: three quarters of foreign investment
in Estonia originates in the Nordic countries (principally Finland
and Sweden), to which Estonia sends 42% of its exports (as compared
to 6.5% going to Russia, 8.8% to Latvia, and 4.7% to Lithuania).[37][38]
On the other hand, the Estonian political system, its flat rate
of income tax, and its non-welfare-state model distinguish it from
the other Nordic states, and indeed from many other European countries.
[edit] Politics
Main article: Politics of Estonia
The Estonian Parliament building in Tallinn.Estonia is a parliamentary
democracy with three branches of power: legislative, executive,
and judicial.
The legislative power lies with the unicameral parliament, the
Riigikogu or State Assembly, which consists of 101 seats. Members
are elected by popular vote to serve four-year terms.
The Government of Estonia or the executive branch is formed by
the Prime Minister of Estonia, nominated by the president and approved
by the parliament. The government consists of 12 ministers, including
the prime minister. The prime minister also has the right to appoint
other ministers, whom he or she will assign with a subject to deal
with and who will not have a ministry to control, becoming a 'minister
without portfolio'. The prime minister has the right to appoint
a maximum of 3 such ministers, as the limit of ministers in one
government is 15.
The supreme judicial power is vested in the Supreme Court or Riigikohus,
with 19 justices. The Chief Justice is appointed by the parliament
for nine years on nomination by the president.
The official Head of State is the President of Estonia, who gives
assent to the laws passed by Riigikogu, also having the right of
sending them back and proposing new laws. The president, however,
does not use these rights very often, having a largely ceremonial
role. He or she is elected by Riigikogu, with two-thirds of the
votes required. If the candidate does not gain the amount of votes
required, the right to elect the president goes over to an electoral
body, consisting of the 101 members of Riigikogu and representatives
from local councils.
As other spheres, Estonian law-making has been successfully integrated
with the Information Age. Estonia has pursued the development of
the e-state and e-government. Internet voting is used in elections
in Estonia [1]. The first Internet voting took place in the 2005
local elections and the first in a parliamentary election was made
available for the 2007 elections, in which 30,275 individuals voted
over the Internet. Voters have a chance to invalidate their vote
in traditional elections, if they wish to.
In its 2007 Worldwide Press Freedom Index, Reporters Without Borders
ranked Estonia 3rd out of 169 countries.
[edit] Counties and municipalities
[edit] Counties
Counties of Estonia
50 km
Main articles: Counties of Estonia and Municipalities of Estonia
Estonia is divided into 15 counties. (maakonnad; sing. - maakond).
They include:
Harju County (Estonian: Harjumaa)
Hiiu County (Estonian: Hiiumaa)
Ida-Viru County (Estonian: Ida-Virumaa)
Järva County (Estonian: Järvamaa)
Jõgeva County (Estonian: Jõgevamaa)
Lääne County (Estonian: Läänemaa)
Lääne-Viru County (Estonian: Lääne-Virumaa)
Pärnu County (Estonian: Pärnumaa)
Põlva County (Estonian: Põlvamaa)
Rapla County (Estonian: Raplamaa)
Saare County (Estonian: Saaremaa)
Tartu County (Estonian: Tartumaa)
Valga County (Estonian: Valgamaa)
Viljandi County (Estonian: Viljandimaa)
Võru County (Estonian: Võrumaa)
[edit] Smaller divisions
See also: Populated places in Estonia, List of towns in Estonia,
and Cities of Estonia
Estonian counties are divided into rural (vallad, singular vald)
and urban (linnad, singular linn; alevid, singular alev; alevikud,
singular alevik) municipalities. The municipalities comprise populated
places (asula or asustusüksus) - various settlements and territorial
units that have no administrative function. A group of populated
places form a rural municipality with local administration. Most
towns constitute separate urban municipalities, while some have
joined with surrounding rural municipalities.
Officially, there are four types of populated places in Estonia:
towns (linn), boroughs (alev), small boroughs (alevik), and villages
(küla).
[edit] Geography
Main article: Geography of Estonia
[edit] Topography
Estonia lies on the eastern shores of the Baltic Sea immediately
across the Gulf of Finland from Finland on the level northwestern
part of the rising east European platform between 57.3° and
59.5° N and 21.5° and 28.1° E. Average elevation reaches
only 50 meters (164 ft) and the country's highest point is the Suur
Munamägi in the southeast at 318 meters (1,043 ft).[39]
Gulf of Finland and Estonia.Oil shale (or kukersite) and limestone
deposits, along with forests which cover 47% of the land, play key
economic roles in this generally resource-poor country. Estonia
boasts over 1,400 lakes. Most are very small, with the largest,
Lake Peipus, (Peipsi in Estonian) being 3555 km² (1372 sq mi).
There are many rivers in the country. The largest are the Võhandu
(162 km), Pärnu (144 km), and Põltsamaa (135 km).[39]
Estonia also boasts numerous bogs, and 3794 kilometers (2,357 mi)
of coastline marked by numerous bays, straits, and inlets. The number
of islands and islets is estimated at some 1,500. Two are large
enough to constitute their own counties: Saaremaa and Hiiumaa.[39]
[edit] Climate
Estonia lies in the northern part of the temperate climate zone
and in the transition zone between maritime and continental climate.
Because Estonia (and all of Northern Europe) is continuously warmed
by the Gulf Stream it has a milder climate despite its northern
latitude. The Baltic Sea causes differences between the climate
of coastal and inland areas.
The average annual temperature in Estonia is 5 °C. The average
temperature in February, the coldest month of the year, is -5.2
°C. The average temperature in July, which is considered the
warmest month of the year, is 18 °C.
The climate is also influenced by the Atlantic Ocean, the North-Atlantic
Stream and the Icelandic Minimum, which is an area known for the
formation of cyclones and where the average air pressure is lower
than in neighbouring areas.
Estonia is located in a humid zone in which the amount of precipitation
is greater than total evaporation. There are about 160 to 190 rainy
days a year, and average precipitation is most plentiful on the
western slopes of the Sakala and Haanja Uplands. Snow cover, which
is deepest in the south-eastern part of Estonia, usually lasts from
mid-December to late March.
[edit] Economy
Main article: Economy of Estonia
[edit] General situation
Estonia is a member of the European Union and its economy is rated
as "high income" by the World Bank. [2]
In June 1992, Estonia replaced the ruble with its own freely convertible
currency, the kroon (EEK). A currency board was created and the
new currency was pegged to the German mark at the rate at 8 EEK
for 1 DEM. When Germany introduced the euro, the peg was changed
to 15.64664 kroon for 1 euro. Shortly after accession to the European
Union the parity was changed to 15.64660 kroon per euro. The Estonian
government finalized the design of Estonia's euro coins in late
2004, and is now intending to adopt the euro as the country's currency
in 2011, later than planned due to continued high inflation.
In 1994, Estonia became one of the first countries in the world
to adopt a flat tax, with a uniform rate of 26% regardless of personal
income. In January 2005 the personal income tax rate was reduced
to 24%. A subsequent reduction to 23% followed in January 2006.
The income tax rate will be decreased by 1% annually to reach 18%
by January 2010.
In 1999, Estonia experienced its worst year economically since
it regained independence in 1991, largely because of the impact
of the August 1998 Russian financial crisis. Estonia joined the
WTO in November 1999. With assistance from the European Union, the
World Bank and the Nordic Investment Bank, Estonia completed most
of its preparations for European Union membership by the end of
2002 and now has one of the strongest economies of the new member
states of the European Union, which it joined on 1 May 2004.
The north-west coast of Estonia near Nõva, Lääne.Since
January 1, 2000, companies have not had to pay income tax on re-invested
income. However, tax is due on profit distributions (including hidden
distributions) at a rate of 22%. Despite the fact that only the
moment of taxation was shifted from earning profits to their distribution,
leaving the rest of the corporate taxation system mostly unchanged,
the current legislation is said to be in violation of one of the
fundamental freedoms of the European Union — free movement
of capital. Estonia is to remove this hindrance by January 2009
when the temporary derogation expires, though Estonia has an option
at that point to institute a very low corporate income tax, either
10%, or even 0%.
The Estonian economy is growing quickly, partly due to a number
of Scandinavian companies relocating their routine operations to
the country and Russian oil transit using Estonian ports. Estonia
has a strong information technology (IT) sector, partly due to the
Tiigrihüpe project undertaken in the 1990s, and has been mentioned
as the most "wired" country in Europe.[40] Its GDP PPP
per capita is at $21,860, the highest of the Baltic states, while
its unemployment rate was 4.2% in July 2006, one of the lowest in
the European Union.[41]
Although the annual GDP growth rate in 2006 amounted again 11.4%,
some of the leading financial institutions and rating agencies (Danske
Bank, S&P) expressed serious concerns about possible overheating
syndromes of the booming economy. A number of the main economic
indicators (e.g. inflation at the 4.5%, significantly negative trade
balance and private credit level) partly support this opinion.
[edit] Exports
Estonia exports machinery and equipment (33% of all exports annually),
wood and paper (15% of all exports annually), textiles (14% of all
exports annually), food products (8% of all exports annually), furniture
(7% of all exports annually), and metals and chemical products.[42]
Estonia also exports 1.562 billion kilowatt hours of electricity
annually.[42]
Estonia's export partners are (2006) Finland (18.4%), Sweden (12.4%),
Latvia (8.9%), Russia (8.1%), US (5.5%), Germany (5.1%), Lithuania
(4.8%), Gibraltar (4.7%).[42]
[edit] Imports
Estonia imports machinery and equipment (33.5% of all imports annually),
chemical products (11.6% of all imports annually), textiles (10.3%
of all imports annually), food products (9.4% of all imports annually),
and transportation equipment (8.9% of all imports annually).[42]
Estonia imports 200 million kilowatt hours of electricity annually.[42]
Estonia's import partners are Finland (18.2%), Russia (13.1%),
Germany (12.4%), Sweden (9%), Lithuania (6.4%), and Latvia (5.7%)
as of 2006.[42]
[edit] Demographics
Main article: Demographics of Estonia
Linguistically, Estonian is closely related to the Finnish language.
Estonians, as an ethnic group, are a Finnic people. Indigenous Estonian-speaking
ethnic Estonians constitute nearly 70% of the total population of
about 1.3 million people.
First and second generation immigrants from various parts of the
former Soviet Union (mainly Russia) comprise most of the remaining
30%. The latter, mostly Russian-speaking ethnic minorities, reside
predominantly in the capital city (Tallinn) and the industrial urban
areas in northeastern Estonia (Ida-Virumaa county). There is also
a small group of Finnish descent, mainly from Ingria.
A significant part of indigenous Baltic Germans left Estonia during
the early 1920s, after land reforms and even dispossessions had
taken place. But the majority of Baltic Germans left the country
in late 1939, after Nazi Germany and USSR had agreed to assign Estonia
into the Soviet 'sphere of influence' in the Molotov-Ribbentrop
Pact. Historically, large parts of Estonia’s north-western
coast and islands have been populated by an indigenous ethnically
Swedish population called rannarootslased ("coastal Swedes").
The majority of Estonia's Swedish population fled to Sweden in 1944,
escaping the advancing Soviet Army. Only a few hundred Swedes remained.
The country's official language is Estonian, a Finno-Ugric language
which is closely related to Finnish. It has been influenced by German,
and like Finnish contains many Swedish words. Russian is also widely
spoken as a secondary language by thirty- to seventy-year-old ethnic
Estonians, because Russian was taught as a compulsory second language
during the Soviet era. Many younger Estonian people can speak English,
having learned it as their first foreign language. Some Russians
residing in Estonia do not speak Estonian, but many of those who
remained after the collapse of the Soviet Union have begun to learn
it.[43] Most common foreign languages learned by Estonians are English,
Russian, German, Swedish, and Finnish.
[edit] Ethnicity
According to information published by the Estonian Foreign Ministry
in 2007, the population of Estonia comprised the following self-reported
ethnic groups [3]:
Ethnic composition of Estonia Ethnicity Population % of total
Estonians 921,062 68.6
Russians 344,280 25.6
Ukrainians 28,158 2.1
Belarusians 16,134 1.2
Finns 11,035 0.8
Tatars 2,487 0.2
Latvians 2,216 0.2
Poles 2,077 0.2
Lithuanians 2,077 0.2
Jews 1,900 0.1
Germans 1,900 0.1
Others 9,084 0.7
[edit] Citizenship issues
Main article: History of Russians in Estonia
After regaining independence in 1991, the authorities of Estonia
did not automatically grant citizenship to anyone whose forebears
did not have Estonian citizenship prior to the Soviet occupation
of 1940. Although the long-term Russian settlers around Mustvee
on Lake Peipus qualified for immediate citizenship, this policy
mainly affected people who had immigrated after Second World War
from other former Soviet republics. Knowledge of the Estonian language
and the Constitution of Estonia was set as a condition for obtaining
naturalisation. The perceived difficulty of the initial language
tests became a point of international contention, as the government
of Russia, the European Union, and a number of human rights organizations
objected on the grounds that they made it impossible for many Russians
who had not learned the local language to gain citizenship in the
short term. As a result, the tests were somewhat altered and the
number of stateless persons has steadily decreased. According to
Estonian officials, in 1992, 32% of residents lacked any form of
citizenship. In January 2008, the Population Registry of the Ministry
of the Interior of Estonia reported that 8.2% of Estonia's residents
have undefined citizenship and 8.0% have foreign citizenship[44].
TallinnAccording to the Estonian Statistical Office[45], ethnic
Russians comprised 25.6% of the population in 2006. Less than third
of ethnic Russians in Estonia hold Russian citizenship, more than
third hold Estonian citizenship, and another third continue to have
undefined citizenship. Residents without Estonian citizenship may
not vote in Riigikogu (the national parliament) elections, residents
without citizenship of any EU member state may not vote in European
Parliament elections, but all permanent legal residents regardless
of citizenship status are eligible to vote in local (municipal)
elections under Estonian law.
[edit] Law on Cultural Autonomies
When the Republic of Estonia was proclaimed in 1918, it promised
all minorities on its territory a right to cultural autonomy. This
right was enshrined in 1925 in the Law on Cultural Autonomy for
National Minorities, which entitled minorities to form and support
cultural and educational institutions and religious congregations
overseen by an elected cultural council.[46]
Cultural autonomies could be granted to the Russian, German, Swedish,
or Jewish minorities, or other minorities numbering more than 3,000
people with longstanding ties to the Republic of Estonia. Prior
to the Soviet occupation, the German and Jewish minorities managed
to elect a cultural council.
The Law on Cultural Autonomy for National Minorities was reinstated
in 1993. In 2005, the Ingrian Finnish minority in Estonia elected
a cultural council and was granted cultural autonomy. The Estonian
Swedish minority similarly received cultural autonomy in 2007.
[edit] Religion
According to the most recent Eurobarometer Poll 2005,[47] 16% of
Estonian citizens responded that "they believe there is a god",
whereas 54% answered that "they believe there is some sort
of spirit or life force" and 26% that "they do not believe
there is any sort of spirit, god, or life force". This, according
to the survey, would have made Estonians the most non-religious
people in the then 25-member European Union. Historically, however,
Estonia used to be a stronghold of Lutheranism due to its strong
links to the Nordic countries.
[edit] International rankings
Organisation Survey Year Ranking
A.T. Kearney/Foreign Policy Globalization Index 2007 Rank 10 out
of 78 countries
Columbia University /
Yale University Environmental Sustainability Index 2001
2002
2005 Rank 27 out of 122 countries
Rank 18 out of 142 countries
Rank 27 out of 146 countries
Heritage Foundation /
The Wall Street Journal Index of Economic Freedom 2008 Rank 12 out
of 162 countries. (Rank 5 in Europe out of 41 countries.)
Reporters Without Borders World Press Freedom Ranking 2004
2005
2006
2007 Rank 11 out of 167 countries (tied with Germany, Sweden, Trinidad
and Tobago)
Rank 11 out of 167 countries
Rank 6 out of 168 countries (tied with Norway)
Rank 3 out of 169 countries (tied with Slovakia)
State of World Liberty Project State of World Liberty Index 2006
Rank 1 out of 159 countries
Transparency International Corruption Perceptions Index 2004
2005
2006 Rank 31 out of 146 countries (tied with Botswana and Slovenia)
Rank 27 out of 158 countries
Rank 24 out of 163 countries (tied with Barbados)
UNDP Human Development Index 2007 Rank 44 out of 177 countries
World Economic Forum Global Competitiveness Report 2005–2006
2006–2007 Growth Competitiveness Index Ranking – Rank
26 out of 117 countries
Growth Competitiveness Index Ranking – Rank 25 out of 125
countries
WorldAudit.org World Democracy Audit 2006 Rank 18 out of 150 countries
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