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equal dimensions (see, for example, the OECD’s Better Life Index: http://www.oecdbetterlifeindex.org/). In addition to its ideological suitability, the HDI’s popularity and authority are increased by the fact that an authoritative UN sub-organisation (UNDP) is in charge of the constant updating of the indicators. Thus, the UN Human Development Index has become an estimable instrument of policymaking. 1.1.2. Two decades in the mirror of human development The Human Development Index has also become a means of introspection for Estonia. Twenty years is a long enough period of time for drawing conclusions about Estonia’s human development in the global context. Table 1.1.1 shows the change in Estonia’ rankings based on the HDI values that have been recalculated based on the changes in methodology made in 2010. Estonia’s 24th position in 1990 may not be very comparable with the others due to the nature of the economy at the time and the quality of the statistical data reflecting it. We can also state that in the early 2000s we underwent strong development, and thereafter, have remained around 30 th in the world. Our position has been shifted backward in the last few years primarily because Singapore, as well as Liechtenstein and Andorra, were recently (2009 and 2010, respectively) added the countries monitored by the UNDP, and they are ranked ahead of us in the HDI. Estonia’s HDI value for 2012 is 0.846, which places us 33 rd position, along with Andorra, compared to 187 countries and territories (Table 1.1.2). Table 1.1.3 shows that in the period between 1990 and 2012, Estonia has made noteworthy progress in all the indicators that form the basis for calculating the HDI according to the current method, as well as in regard to the HDI values. Estonia’s life expectancy at birth has increased 5.6 years, the means years of schooling 2.7 years and the gross national income per capita by 71%. 1.1.3. Trends and prospects The UN Human Development Index time-series data, encompassing, by now, more than 20 years, allows countries to be compared on the basis of the dynamics of human development indicators. The HDI’s change curves in time express the speed and uniformity of the achievement of success and the impact of sporadic setbacks. If, in the promotion of human development, we wish to learn from the achievements of other countries, it makes sense to look for countries that are, more or less, similar to us, and have demonstrated relatively rapid human development. Firstly, in this way, we can place ourselves in yet another system of references, and assess our success among those similar to us. Secondly, it would be worthwhile to choose countries whose economic and social policies we could analyse and assess more closely from the aspect of possibly adapting certain elements of their system of functioning. Table 1.1.3 Changes in Estonia’s human development index and its basic indicators, 1990-2012 Life expectancy at birth (years) Mean years of schooling (years) Expected years of schooling (years) Gross national income (GNI) per capita (2005 PPP US dollars) Human development index 1990 69.4 9.3 12.8 10,181 0.728 2000 70.2 11.7 15.0 11,137 0.786 2005 72.7 11.9 16.1 15,920 0.830 2010 74.6 12.0 15.8 15,788 0.839 2011 74.8 12.0 15.8 16,980 0.844 2012 75.0 12.0 15.8 17,402 0.846 Source: UNDP 2013 Below, the dynamics of Estonia’s human development has first been compared to the averages of the group of countries that have, according to the HDI, very high and high human development levels, and thereafter, with selected reference countries. This group of so-called “reference countries” consists of successful small countries from various regions of the world, whose cultural background and level of development generally do not differ greatly from ours. These are: • from Central and Eastern Europe – Slovakia, the Czech Republic, Hungary and Slovenia; • from Western and Northern Europe – Ireland, Switzerland, the Netherlands, Denmark and Finland; • from the rest of the world – New Zealand, South Korea, Chile, Uruguay and Costa Rica. Based on the database of the 2013 global Human Development Report, graphs have been compiled that show the Estonian trends in comparison to the given countries, based on the HDI and its three sub-indices. In order to make the diagrams easier to read, a limited selection of the reference countries is included on each diagram. Between 1990 and 2012, Estonia, in the HDI comparison with countries with a very high as well as with a high level of human development, has increased faster than the average, and has therefore approached the average of countries with a very high level of development (Figure 1.1.1). In Figure 1.1.2, the development of Estonia’s human development index is compared to the fastest developers in the groups of reference countries. Compared to the reference countries in Central and Eastern Europe, the speed of Estonia’s development was comparable to that of Slovenia, the leader of the group. In comparison to the Western and Northern European countries, the pace of Estonia’s development has been comparable to that of Ireland, the leader of this group of countries. However, hav- 10 Estonian Human Development Report 2012/2013
Figure 1.1.1 The human development index: Estonia compared to the group of countries with very high and high human development levels, 1990–2012 Figure 1.1.3 The education sub-index: Estonia compared to the groups of countries with very high and high human development levels, 1990–2012 Countries with very high human development Countries with high human development Estonia Countries with very high human development Countries with high human development Estonia 0.90 0.90 0.85 0.85 0.80 0.80 0.75 human development index 0.75 0.70 0.65 education sub-index 0.70 0.65 0.60 0.55 1990 2000 2005 2006 2007 2008 2009 2011 Ireland South Korea Slovenia Estonia Chile 0.90 0.85 0.80 0.75 0.70 0.65 1990 2000 2005 2006 2007 2008 2009 2011 1990 2000 2005 2006 2007 2008 2009 2010 2011 Source: UNDP 2013 Source: UNDP 2013 Figure 1.1.2 The human development index: Estonia in comparison to the reference countries, 1990–2012 Figure 1.1.4 The education sub-index: Estonia in comparison to the reference countries, 1990–2012 New Zealand Ireland South Korea Estonia Slovenia 1.0 human development index human development index 0.95 0.90 0.85 0.80 0.75 0.70 1990 2000 2005 2006 2007 2008 2009 2010 2011 Source: UNDP 2013 Source: UNDP 2013 ing started, in 1990, from a considerably lower HDI level, our gap with the given reference countries has definitely decreased in 20 years, but we are a long way from catching up. In 2011, Estonia was at the HDI level where, for instance, the Netherlands and Switzerland were already 20, Ireland 15 and Finland 10 years ago. Compared to successful small countries elsewhere in the world, the speed of Estonia’s development is nothing to be ashamed of. The only country we are clearly lagging behind is South Korea, which is a clear exception in this group – in only twenty years, starting from a level only slightly better than ours it was able to become one of the top countries in the world. In 20 years, Latin America’s successful countries, headed up by Chile, which is the most successful according to the HDI, have not come close to our level of human development, while we ourselves have come closer to the reference countries that have had the highest levels of human development for a long time, for instance, New Zealand. It is generally known that in the sub-indices of the HDI, Estonia has room for development in both Estonian Human Development Report 2012/2013 11
Page 1: ESTONIAN HUMAN DEVELOPMENT REPORT 2
Page 4 and 5: Table of Contents 1 Human Capital /
Page 6 and 7: Dear Reader Since the moment when E
Page 9 and 10: 1Human Capital Estonian Human Devel
Page 11: the HDI’s content has also been h
Page 15 and 16: Figure 1.1.7 The income sub-index:
Page 17 and 18: The results of the Princeton Projec
Page 19 and 20: the hypothetical generation. The to
Page 21 and 22: Figure 1.2.3 Life expectancy. Eston
Page 23 and 24: Table 1.2.2 also presents the most
Page 25 and 26: The new trends that are appearing i
Page 27 and 28: Figure 1.2.8 Components of populati
Page 29 and 30: New features were introduced into E
Page 31 and 32: Initiation of Voluntary Birth Contr
Page 33 and 34: Table 1.3.1 Best-known educational
Page 35 and 36: (OECD 2012b). Therefore a certain r
Page 37 and 38: The reciprocal dependence of the pr
Page 39 and 40: Figure 1.3.8 Percentage of students
Page 41 and 42: Table 1.3.4 The quality of educatio
Page 43 and 44: 1.4 Health Raul-Allan Kiivet Change
Page 45 and 46: Table 1.4.1 Usage of prescription m
Page 47 and 48: allude to the fact that approximate
Page 49 and 50: promote healthy lifestyles among th
Page 51 and 52: Figure 1.5.1 The World Values Surve
Page 53 and 54: Table 1.5.2 Estonia’s participati
Page 55 and 56: Figure 1.5.3 The percentage of the
Page 57 and 58: Figure 1.5.5 Percentage of the Esto
Page 59 and 60: The fact that Estonia’s position
Page 61 and 62: Summary Mati Heidmets The global vi
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2People and Society Estonian Human
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Table 2.1.1 Structure of the Bertel
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tioning market economies (15 states
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2.2 Freedom and democracy Martin M
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Table 2.2.1 Democracy indicators Po
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Figure 2.2.2 The distribution of th
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would be something that none of the
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political participation are general
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strongest, while a very small perce
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is concerned, Estonia is one of the
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Figure 2.4.2 Average circulation of
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2.5 Corruption Jüri Saar In accord
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Lithuania, 61%; and in Russia, 69%.
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2.6.2 Intentional homicides in Esto
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crime. And thirdly, there was a wis
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References 1. Ahven, A. & Tabur, L.
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states included in the EU Kids Onli
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2.8 Public assessments of the state
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Figure 2.8.4 Changes releated to tr
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of the state’s development are en
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Table 2.9.1 The positions of Estoni
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3. IEP (2011). Structures of Peace.
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3Welfare and the Quality of Life Es
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choices made, not what people say t
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Figure 3.1.5 Public social spending
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tion agreed upon the social contrac
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References 1. Aidukaite, J. (2006).
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hand, to the “inequality of acces
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and explanations of the extent of i
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5- much more than I deserve. Some d
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people in Estonia consider the inco
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Table 3.3.1 Experienced Well-Being
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at about 70%. In Latvia and Lithuan
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sign. It seems that the usual view
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3.4 Quality of life Anu Toots 3.4.1
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a uniform composite indicator has n
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3.4.6 The components of life qualit
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Figure 3.4.4c Perceived quality of
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Figure 3.4.5 Changes in the depriva
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3.5 Environment dimension of well-b
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Figure 3.5.1.b Estonia’s position
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3.5.4 Energy intensity The energy i
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productivity, which is defined as t
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perceive themselves as worse off th
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4The Economy Estonian Human Develop
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vide a valuable connection for maki
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Figure 4.1.3 Components of economic
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ule of law, the sub-indicators for
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References 1. Acemoglu, D.; Robinso
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Development Report employs generali
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and pasture land, and this was capi
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Basing the total and net savings re
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4.3 Labour market Reelika Leetmaa,
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The problems include the very limit
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• Expenditures for active labour
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who lose their jobs. These ensure i
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4.4 Productivity and the economic s
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labour costs at the company level r
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Table 4.4.4 Comparison of the produ
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Figure 4.4.1 Annual average increas
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4.5 Innovation Erik Terk, Katrin M
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Table 4.5.2 Comparison of innovatio
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Table 4.5.4 Comparison of the indic
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in order to make the R&D potential
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It is characteristic of the South K
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mechanisms for increasing their sta
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Globalisation and Policy Patterns 5
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When Estonia regained its independe
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5.2 The impacts of globalisation an
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Table 5.2.2 Support of the differen
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5.3 Development policies Erik Terk,
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• C -the “Estonia-centred” su
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Figure 5.4.1 Support for the possib
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Summary Erik Terk Estonia is part o
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ehavioural patterns. Therefore, it
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EDR 2012/2013 authors Clemens Buche
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EDR 2012/2013 authors Alari Purju i
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Editor-in-Chief: Mati Heidmets Prod
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