Estonian Human Development Report

Figure 5.2.1. GDP and AIC per capita volume indexes
for 2006, EU27=100
Albania
Bulgaria
Romania
Poland
Latvia
Slovakia
Lithuania
Hungary
Estonia
Czech
Republic
Slovenia
Spain
Finland
Germany
Denmark
France
Sweden
Norway
United
Kingdom
Luxembourg
23
21
40
37
43
39
55
52
59
54
61
64
63
56
65
65
65
69
70
79
80
88
100
105
105
117
112
114
114
126
115
111
116
125
130
131
118
0 50 100 150 200 250 300
Source: Eurostat 2008
Periods of development of the so-called
Western consumer society in Estonia after
the restoration of its independence
The following is a short overview of the periods of development
of the consumer society in Estonia from the end of
the Soviet era until today, presented as a list of keywords.
It must be taken into account that the beginning and end
dates of the periods are provisional as it is difficult to draw
specific lines in this case.
1988–1992 – transition from a Soviet consumer culture
to a Western one: the monetary reform of 1992 as a
breaking point; the growth in the selection of goods available
in stores; consumers’ ability to benefit from the new
selection is inhibited by very limited financial resources.
1993–1997 – the early period: increasing stratification on
the basis of consumption opportunities; satisfying the initial
“hunger” and acquiring foreign commodities (e.g. home
appliances); abundance of products sold under fake internationally
recognized brand names in marketplaces and kiosks.
1998–2004 – period of “maturation” of the Estonian
consumer culture; aestheticization and the spread of postmaterialism
(e.g. in the case of branding and advertising);
increasing importance of consumption aimed at lifestyles
and identity creation; quick growth in the number and size
of shopping venues, including the opening of large shopping
centres and supermarket chains in Estonia’s larger
cities; emergence of shopping as a new way of spending
free time; Estonia’s accession to the European Union as a
symbolic milestone in the “re-Westernization” of Estonia.
2005–2008 – period following Estonia’s accession to
the EU; growing consumerism (at least until the beginning
of the economic crisis in 2008); real estate boom and
the rapid increase of volumes of consumption; the public
emergence of new topics and problems induced by the
173
186
AIC
GDP
280
consumer society, such as environmentally friendly consumption,
consumption practices of children and youths;
marketing aimed at children and young people.
Estonia in comparison with other
European countries
Useful data for comparing the relative level of consumption
in different European countries is available in Eurostat’s
index of actual individual consumption (AIC), which measures
households’ relative standard of living per capita based
on their consumption-related expenses. The index takes into
account purchased goods and services, including education
and healthcare. The average index value for the 27 EU member
states is stipulated as 100. As seen in Figure 5.2.1., Estonia’s
volume of consumption is one of the highest among the
new EU member states, with only the Czech Republic and
Slovenia showing a higher consumption volume. However,
the volume of consumption of the wealthier EU “core states”,
especially the United Kingdom, France, Germany and Sweden,
is up to twice as high as that of Estonia.
The increase in the volume of consumption-related
expenses in fixed prices during the period 1995–2006 is
also indicative of Estonia’s development. During this period
expenses increased more than twofold in Latvia and Estonia,
while in Germany the increase was just over 10% (see
Eurostat Yearbook 2008). The growth of Estonia’s motorization
rate has been equally fast. During the aforementioned
period, the number of cars owned in Estonia per 1000 residents
increased from 267 to 350. At the same time, the
increase in car ownership was even greater in Poland and
Lithuania – from 195 to 314 and from 198 to 384, respectively.
Understandably, there was no similarly sharp growth
in, for example, Denmark where the number of cars per
1000 residents was already high (Denmark experienced a
change from 321 to 354) (see Eurostat 2008).
A new phenomenon in Estonia’s transition to a consumer
society is the satisfaction of consumption needs outside
Estonia. According to the Eurobarometer study (see
Consumer Protection… 2008), 37% of Estonian residents
had made at least one purchase in another EU country
within the last year, a percentage significantly higher than
the EU27 average (25%). Compared to the 2006 figures, this
indicator grew by 12% in Estonia, constituting the highest
increase rate among all EU countries according to the study
(EU27 experienced an average decrease of 1%). During the
past year, Estonian consumers (i.e. those who had made at
least one purchase) spent an average of 600 euros on shopping
in other EU countries, while the Maltese spent an average
of 3700 euros and Luxembourgers spent 2300 euros.
Consumers from Lithuania and Latvia also spent more than
Estonian consumers: 700 and 640 euros, respectively.
The Estonian consumer 2002–2008
The following section provides an analysis of the results of
the Mina. Maailm. Meedia studies published at the end of
2002 and in November 2008.
The general opinion of Estonian residents regarding people’s
material well-being and the improvement of their consumption
opportunities during the period following the restoration
of independence has not changed significantly since
the end of 2002. Among the list of changes that have occurred
in Estonia, this aspect was considered very positive by only
2% of the respondents in 2002 and 4% in 2008, generally pos-
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