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132 Figure 3.4.1 Estonia’s position among 36countries, and the scores by indicators, on a ten point scale , where 0 is the lowest and 10 the highest Income (32.) Life satisfaction Education (5.) 8 (30.) 6 Community Civic (25.) 4 engagement (34.) 2 Environment Housing (27.) (35.) Work-life Health balance (34.) (22.) Source: OECD (2011) Better Life Index http://www.oecdbetterlifeindex.org/#/22212213212 Figure 3.4.2. Difficulties making ends meet, by income quartile (%) Highest income group Middle income group Lowest income group Percentage 0 10 20 30 40 50 60 70 80 90 Greece Hungary Bulgaria Romania Latvia Estonia Lithuania Slovakia Cyprus Ireland Malta Poland Spain Italy France EU 27 Czech Republic Slovenia Belgium Great Britain Portugal Germany Finland Netherlands Austria Denmark Luxembourg Sweden Percentage 0 10 20 30 40 50 60 70 80 90 Source: EQLS 2011 Estonian Human Development Report 2012/2013 Safety Jobs and wages (33.) (35.) ment in various spheres. Therefore, our progress is being driven by a few factors, which may be not sufficient for sustainable development. (Aaviksoo, Kirss, Mägi, 2010). On the other hand, it gives a chance to turn the unevenness from a problem into opportunity – the weaker areas can be pulled along, with the help of the stronger ones. As could be expected, Estonia’s strength is its accessible and efficient educational system; our position is also improved by people’s reciprocal helpfulness, as well as by the good air and water quality. Also, as could be expected, Estonia’s weakness is small household incomes, calculated on net-adjusted disposable income and household financial wealth. In Estonia’s case, the low level of household financial wealth means that the real estate owned by families has a low market value; people own few securities, and have heavy loan obligations. This explains also, why in the jobs and wages indicator, Estonia scores higher than in the income and wealth indicator. Recently, there has been a lot of discussion about the rapid development of civil society and the spread of civic engagement. However, the corresponding indicator for Estonia in the Better Life Index (BLI) is one of the lowest, along with Israel and Russia. The reason for this dissonance has to be looked for in the differences in the data that form the indicator. The civic engagement component of the OECD’s BLI includes two measures – turnout in the last elections, and consultations with the public in the course of law-making. The openness and transparency of the consultation process was assessed on the basis of an expert survey, where employees in the government cabinet have been the respondents. Thus, there is probably no reason to assume that the picture provided by the data is worse than the reality. Does the European Quality of Life Survey (EQLS), which is based on an opinion poll, change Estonia’sposition, compared to the measurements made by the OECD on bases of national statistics? Leaving aside some methodological differences , it has to be said that it does not. The standard of living, which the EQLS measures by a material deprivation index, places Estonia third from the bottom, after Bulgaria and Hungary. In quality of housing and health satisfaction, Estonia ranks, after Latvia, next to last . Since all the listed indictors correlate with life satisfaction, it is not surprising that in life satisfaction Estoniais in fifth position from the bottom, among the 27 EU Member States. Political engagement, which is included into both the OECD and the EU index, is below the average. At the same time, Estonia is one of the few post-communist countries where the level of people’s apolitical social activities (clubs, associations and societies) is considerably above the EU average. This highlights a characteristic feature of Estonia’s civil society -- a high level of community engagement, but limited access to governance and policymaking. Estonia’s greatest strength, based on EQLS 2011, are limited tensions on the grounds of race-ethnicity and religion. This is the only measure, in the entire complicated system of indicators, where Estonia ranks first. Only 16% of the respondents in Estonia found that there are great tensions between ethnic groups, while the European Union average was 37%; in Belgium, the Netherlands and France it was even 48% to 50%.
3.4.6 The components of life quality Below, some of the important components of life quality, not analysed in other parts of this report, will be discussed in greater detail. The data originate from the European Quality of Life Survey (EQLS) and the OECD’s Better Life Index (BLI). 3.4.7 Living standard The economic crisis, which started in 2008, has changed many Europeans’ ability to cope. According to the European Quality of Life Survey, in 2011 and 2012, 45% of Europeans experienced larger or smaller problems coping economically (Figure 3.4.2). Yet, the differences between the countries are very large.In Austria, Sweden and Denmark less than 20% faced these problems, in Greece 86%, and in the Eastern European states, approximately 70%. In Estonia, in addition to the high percentage (68%) of people with coping problems, the small difference between the lowest and highest income quintile is also striking. This means, that half of the people in the wealthiest population group had also difficultiesin making ends meet . This can occur, on the one hand, because people with higher incomes are living beyond their means, and have heavy loan burden, on the other hand, because of overall low wealth of Estonian society. The income level of highest income class in Eastern Europe, are close to that of the middle class in Western Europe. The self-assessment of economic coping may depend on which standard of living is being aspired to – if the standard is set too high, the self-assessment may, as a result, be Table 3.4.4 Deprivation index and its components in the reference states, % of people who cannot afford the listed items, and the mean number of items people could not afford. Keeping home adequately warm Source: EQLS 2011 An annual week’s holiday Replacing worn-out furniture Regular meals with meat or fish Buying new, not second-hand, clothes Inviting friends or family for a drink/meal Mean number of items people cannot afford Denmark 2 16 15 2 4 4 0,4 Austria 2 14 14 4 4 7 0,4 Netherlands 2 14 18 2 9 6 0,5 Finland 1 20 21 4 9 6 0,6 Slovenia 2 36 36 10 15 10 1,1 Ireland 9 39 34 4 12 18 1,2 EU 27 12 37 35 10 17 15 1,2 Czech Republic 5 36 46 17 27 19 1,5 Slovakia 11 58 56 26 32 30 2,1 Estonia 25 63 63 28 43 29 2,6 Hungary 15 65 70 41 46 39 2,8 Table 3.4.5 Problems with housing and the neighbourhood, %, reference countries Shortage of space Rot in windows low. Therefore, to make data comparable, one should estimate to what extent people can afford certainitems. In the EQLS survey, these items included a warm room, a week’s holiday, the replacement of worn-out furniture, the possibility to eat regular meals that included meat and fish, to buy new (not second-hand) clothes and to invite guests over.siin allpool on korrektne loetelu originaalis The six items are: 1. – keeping the home adequately warm; 2. – paying for a week’s annual holiday away from home (not staying with relatives); 3. – having a meal with meat, chicken or fish every second day; 4. – replacing worn-out furniture; 5. – buying new clothes rather than second-hand ones; 6. – inviting friends or family for a drink or meal at least once a month. Based on the listed items, a deprivation index was created, which shows the mean number of items people could not afford. In the index, all items were given equal weight, although their monetary cost differs. Therefore, it is understandable that fewer people can afford a week-long holiday, than can afford to have friends over. However, this difference in the cost of the items does not harmcomparison of thecountries In the wealthy Western European states, most people can afford everything; while the situation is much worse in Eastern Europe. A quarter of the people in Estonia cannot afford any of the items, whereas 25% put up with a cold apartment, and 63% cannot afford a holiday away from home, or to replace their old furniture. Based on the deprivation index, Estonia is third from the bottom, above Bulgaria and Hungary. 3.4.8 Quality of housing and local neighbourhood Quality housing adequate to one’s needs is one of the most important components of the quality of life. In the material context, this is a household’s largest expenditure, while non-materially it affects the mental development and health indicators of the children and other family members. Damp Lack of indoor toilet Lack of bath Lack of space outside No green space/rest area Estonia 15 18 22 13 15 22 12 Hungary 14 16 14 4 5 12 11 EU 27 15 9 12 3 3 14 14 Slovakia 10 6 7 3 3 11 19 Finland 15 6 10 1 2 8 4 Austria 10 3 5 2 1 18 9 Ireland 13 5 10 1 1 6 9 Czech Republic 17 5 11 0 1 22 17 Slovenia 11 8 12 1 0 5 8 Denmark 13 6 10 0 0 0 2 Netherlands 13 8 12 0 0 5 13 Source: EQLS 2011 Estonian Human Development Report 2012/2013 133
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ESTONIAN HUMAN DEVELOPMENT REPORT 2
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Table of Contents 1 Human Capital /
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Dear Reader Since the moment when E
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1Human Capital Estonian Human Devel
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the HDI’s content has also been h
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Figure 1.1.1 The human development
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Figure 1.1.7 The income sub-index:
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The results of the Princeton Projec
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the hypothetical generation. The to
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Figure 1.2.3 Life expectancy. Eston
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Table 1.2.2 also presents the most
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The new trends that are appearing i
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Figure 1.2.8 Components of populati
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New features were introduced into E
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Initiation of Voluntary Birth Contr
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Table 1.3.1 Best-known educational
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(OECD 2012b). Therefore a certain r
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The reciprocal dependence of the pr
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Figure 1.3.8 Percentage of students
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Table 1.3.4 The quality of educatio
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1.4 Health Raul-Allan Kiivet Change
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Table 1.4.1 Usage of prescription m
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allude to the fact that approximate
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promote healthy lifestyles among th
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Figure 1.5.1 The World Values Surve
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Table 1.5.2 Estonia’s participati
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Figure 1.5.3 The percentage of the
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Figure 1.5.5 Percentage of the Esto
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The fact that Estonia’s position
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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
Page 83 and 84: Figure 2.4.2 Average circulation of
Page 85 and 86: 2.5 Corruption Jüri Saar In accord
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Page 89 and 90: 2.6.2 Intentional homicides in Esto
Page 91 and 92: crime. And thirdly, there was a wis
Page 93 and 94: References 1. Ahven, A. & Tabur, L.
Page 95 and 96: states included in the EU Kids Onli
Page 97 and 98: 2.8 Public assessments of the state
Page 99 and 100: Figure 2.8.4 Changes releated to tr
Page 101 and 102: of the state’s development are en
Page 103 and 104: Table 2.9.1 The positions of Estoni
Page 105 and 106: 3. IEP (2011). Structures of Peace.
Page 107 and 108: 3Welfare and the Quality of Life Es
Page 109 and 110: choices made, not what people say t
Page 111 and 112: Figure 3.1.5 Public social spending
Page 113 and 114: tion agreed upon the social contrac
Page 115 and 116: References 1. Aidukaite, J. (2006).
Page 117 and 118: hand, to the “inequality of acces
Page 119 and 120: and explanations of the extent of i
Page 121 and 122: 5- much more than I deserve. Some d
Page 123 and 124: people in Estonia consider the inco
Page 125 and 126: Table 3.3.1 Experienced Well-Being
Page 127 and 128: at about 70%. In Latvia and Lithuan
Page 129 and 130: sign. It seems that the usual view
Page 131 and 132: 3.4 Quality of life Anu Toots 3.4.1
Page 133: a uniform composite indicator has n
Page 137 and 138: Figure 3.4.4c Perceived quality of
Page 139 and 140: Figure 3.4.5 Changes in the depriva
Page 141 and 142: 3.5 Environment dimension of well-b
Page 143 and 144: Figure 3.5.1.b Estonia’s position
Page 145 and 146: 3.5.4 Energy intensity The energy i
Page 147 and 148: productivity, which is defined as t
Page 149 and 150: perceive themselves as worse off th
Page 151 and 152: 4The Economy Estonian Human Develop
Page 153 and 154: vide a valuable connection for maki
Page 155 and 156: Figure 4.1.3 Components of economic
Page 157 and 158: ule of law, the sub-indicators for
Page 159 and 160: References 1. Acemoglu, D.; Robinso
Page 161 and 162: Development Report employs generali
Page 163 and 164: and pasture land, and this was capi
Page 165 and 166: Basing the total and net savings re
Page 167 and 168: 4.3 Labour market Reelika Leetmaa,
Page 169 and 170: The problems include the very limit
Page 171 and 172: • Expenditures for active labour
Page 173 and 174: who lose their jobs. These ensure i
Page 175 and 176: 4.4 Productivity and the economic s
Page 177 and 178: labour costs at the company level r
Page 179 and 180: Table 4.4.4 Comparison of the produ
Page 181 and 182: Figure 4.4.1 Annual average increas
Page 183 and 184: 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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