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Figure 1.1.5 The health sub-index: Estonia compared to the groups of countries with very high and high human development levels, 1990-2012 health sub-index Countries with very high human development Countries with high human development 0.95 0.90 0.85 0.80 0.75 0.70 1990 Source: UNDP 2013 the health and income indices, while in the education index, i.e. the number of years devoted to the acquisition of education, we have, at least in the context of the HDI’s sub-index, exceeded the average of the countries with very high human development (Figure 1.1.3). However, at the same time, we have made no further development in this index since 2004. Is this a problem? Probably not, since it appears that for most countries the saturation point, related to years of education, is arrived at around the sub-index value 0.9, the point which Estonia has already reached (see Figure 1.1.4). New Zealand and Ireland, the countries with the highest values in the education sub-index, stand out – their saturation point was just arrived at a slightly higher level. It seems that from that point on, the suitability of the current sub-index for differentiating the educational levels of various countries ends. There is no point in extending the duration of education, and development will proceed on to substantive measurements. In the health sub-index, which calculates life expectancy at birth, Estonia is at a more modest position. Figure 1.1.5 shows that in the 1990s, during an economically and socially difficult transition period, Estonia’s development in this area was halted, and compared to the countries that continued to develop, a relative setback occurred. However, since the turn of the century, we have succeeded in somewhat closing the gap with the average of the countries with very high human development. But, to date, we have not been able to achieve the average achieved by the reference countries 20 years ago. At the same time, the increase in average life expectancy in Estonia, since the beginning of the new century, has been faster than that of any of the Central and Eastern European countries included in the comparison; we 2000 2005 2006 2007 2008 2009 Estonia 2011 have already surpassed Hungary and are catching up with Slovakia, which can be considered to be a good achievement (Figure 1.1.6). In the comparison with Western and Northern European countries, during the last decade, the pace of our improvement in the health sub-index has been rapid, compared to the successfully rising Ireland. Yet, closing the gap with Ireland, or even Finland, may take another twenty years. Against the background of the rest of the world, during the last decade, Estonia has made relatively rapid progress. The speed of our development is roughly equivalent to that of the “miracle country” – South Korea. On the other hand, in regard to the health sub-index (average life expectancy), we unfortunately lag significantly behind all of the reference countries, and in the near future, we will probably only begin to catch up with Uruguay. Due to rapid economic fluctuations, the development in the income sub-index has been more sporadic than in the other indicators. The 1990s, due to the transition crisis, was a time when the relative gap increased, if we compare Estonia to the general trend in the countries with a very high level of human development (Figure 1.1.7). The short boom period after the turn of the century improved the wealth indicator significantly, but after the last economic crisis, the restoration of the convergence with the average achieved by countries with a very high level of human development, which occurred during the boom period, is not very probable. The economic crisis has reduced the gross national income (GNI) of all the Central and Eastern European countries included in the comparison. Our closest competitors in the economic growth sphere continue to be Slovakia and Hungary, with whom we have very similar wealth levels, but, for instance, in comparison to Slovenia, no significant progress has been made in closing the gap (Figure 1.1.7). Figure 1.1.6 The health sub-index: Estonia in comparison to the reference countries, 1990-2012 health sub-index Ireland Chile Slovenia Uruguay South Korea Estonia 0.95 0.90 0.85 0.80 0.75 1990 Source: UNDP 2013 2000 2005 2006 2007 2008 2009 2011 12 Estonian Human Development Report 2012/2013
Figure 1.1.7 The income 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 0.85 0.80 0.75 Estonia In the comparison with Western and Northern European countries, it can be noted that in summarizing the period between 1990 and 2007, the average pace of Estonia’s growth in the income index was only slightly slower than that of the Celtic Tiger, Ireland, despite the serious transition crisis in the early 1990s. In comparison to the small countries elsewhere in the world, the growth of Estonia’s income index in the years from 1990 to 2007 also seems to be rapid. True, it lagged behind that of South Korea, but was approximately the same as that of the Latin American reference countries. The HDI’s and its sub-indices’ comparison of the temporal dynamics of the various countries allows us to draw some general conclusions about Estonia’s human development. income sub-index 0.70 0.65 0.60 1990 2000 2005 2006 2007 2008 2009 2010 2011 • The average speed of Estonia’s human development during the last two decades has been one of the fastest among the chosen reference countries, being close to the relevant indicators of the well-known success stories, Ireland and Slovenia, and only lagging behind the speed of development experienced by South Korea, which has been exceptionally successful in the global context. Source: UNDP 2013 Figure 1.1.8 The income sub-index: Estonia in comparison to the reference countries, 1990-2012 income sub-index Ireland Slovenia South Korea Estonia Chile 0.85 0.80 0.75 0.70 0.65 0.60 1990 Source: UNDP 2013 2000 2005 2006 2007 2008 2009 2010 2011 • Estonia’s perceptible gap with the countries with the world’s highest development levels is caused less by our slow development than by our low point of departure and the transition crisis of the 1990s. Today, despite the problems experienced, our health and wealth sub-indices are at a level achieved by the most developed reference countries 10 to 20 years ago. • The political choices made after the restoration of Estonia’s independence have generally promoted successful human development in the society as a whole. Whereas, this success was achieved predominantly before Estonia’s accession to the European Union and, at first, without any assistance from EU Structural Funds, which we did not start to receive until 2005. Based on the development of the reference countries, it can be claimed that it would have been unrealistic to hope for more rapid development. • In order for Estonia to close the gap with the countries that have the world’s best human development indicators, it is most important to increase people’s wealth and to promote healthy behaviour. In this regard, we can utilise the noteworthy experiences of several reference countries. References 1. Anand, S. & Sen, A. (2000). “The Income Component of the Human Development Index,” Journal of Human Development 1(1), 83–106. 2. Klugman, J., Rodríguez , F., Hyung-Jin Choi. (2011). The HDI 2010: New Controversies, Old Critiques. Human Development Research Papers, 2011/01, Human Development Report Office, United Nations Development Programme. 3. Sen, Amartya. (1998). Autobiography. http://www.nobelprize.org/ nobel_prizes/economics/laureates/1998/sen-autobio.html 4. Sen, Amartya. (2003). “Foreword,” Readings in Human Development, Concepts, Measures and Policies for a Development Paradigm. S. Fukuda-Parr and A. K. Shiva Kumar (Eds). Oxford University Press, New York. 5. UNDP (2013). International Human Development Indicators http://hdrstats.undp.org/en/tables/ Estonian Human Development Report 2012/2013 13
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 and 12: the HDI’s content has also been h
Page 13: Figure 1.1.1 The human development
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
Page 63 and 64: 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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