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Figure 1.1.7<br />

The income sub-index: Estonia compared to the groups<br />

of countries with very high and high human development<br />

levels, 1990-2012<br />

Countries with very high human development<br />

Countries with high human development<br />

0.85<br />

0.80<br />

0.75<br />

Estonia<br />

In the comparison with Western and Northern European<br />

countries, it can be noted that in summarizing the period<br />

between 1990 and 2007, the average pace of Estonia’s<br />

growth in the income index was only slightly slower than<br />

that of the Celtic Tiger, Ireland, despite the serious transition<br />

crisis in the early 1990s.<br />

In comparison to the small countries elsewhere in<br />

the world, the growth of Estonia’s income index in the<br />

years from 1990 to 2007 also seems to be rapid. True,<br />

it lagged behind that of South Korea, but was approximately<br />

the same as that of the Latin American reference<br />

countries.<br />

The HDI’s and its sub-indices’ comparison of the<br />

temporal dynamics of the various countries allows us to<br />

draw some general conclusions about Estonia’s human<br />

development.<br />

income sub-index<br />

0.70<br />

0.65<br />

0.60<br />

1990<br />

2000<br />

2005<br />

2006<br />

2007<br />

2008<br />

2009<br />

2010<br />

2011<br />

• The average speed of Estonia’s human development<br />

during the last two decades has been one of the<br />

fastest among the chosen reference countries, being<br />

close to the relevant indicators of the well-known<br />

success stories, Ireland and Slovenia, and only lagging<br />

behind the speed of development experienced<br />

by South Korea, which has been exceptionally successful<br />

in the global context.<br />

Source: UNDP 2013<br />

Figure 1.1.8<br />

The income sub-index: Estonia in comparison to the<br />

reference countries, 1990-2012<br />

income sub-index<br />

Ireland Slovenia South Korea<br />

Estonia Chile<br />

0.85<br />

0.80<br />

0.75<br />

0.70<br />

0.65<br />

0.60<br />

1990<br />

Source: UNDP 2013<br />

2000<br />

2005<br />

2006<br />

2007<br />

2008<br />

2009<br />

2010<br />

2011<br />

• Estonia’s perceptible gap with the countries with<br />

the world’s highest development levels is caused less<br />

by our slow development than by our low point of<br />

departure and the transition crisis of the 1990s.<br />

Today, despite the problems experienced, our health<br />

and wealth sub-indices are at a level achieved by the<br />

most developed reference countries 10 to 20 years ago.<br />

• The political choices made after the restoration of<br />

Estonia’s independence have generally promoted<br />

successful human development in the society as a<br />

whole. Whereas, this success was achieved predominantly<br />

before Estonia’s accession to the European<br />

Union and, at first, without any assistance from<br />

EU Structural Funds, which we did not start to<br />

receive until 2005. Based on the development of<br />

the reference countries, it can be claimed that it<br />

would have been unrealistic to hope for more rapid<br />

development.<br />

• In order for Estonia to close the gap with the countries<br />

that have the world’s best human development<br />

indicators, it is most important to increase people’s<br />

wealth and to promote healthy behaviour. In this<br />

regard, we can utilise the noteworthy experiences<br />

of several reference countries.<br />

References<br />

1. Anand, S. & Sen, A. (2000). “The Income Component of the Human<br />

Development Index,” Journal of Human Development 1(1), 83–106.<br />

2. Klugman, J., Rodríguez , F., Hyung-Jin Choi. (2011). The HDI<br />

2010: New Controversies, Old Critiques. Human Development<br />

Research Papers, 2011/01, Human Development Report Office,<br />

United Nations Development Programme.<br />

3. Sen, Amartya. (1998). Autobiography. http://www.nobelprize.org/<br />

nobel_prizes/economics/laureates/1998/sen-autobio.html<br />

4. Sen, Amartya. (2003). “Foreword,” Readings in Human Development,<br />

Concepts, Measures and Policies for a Development<br />

Paradigm. S. Fukuda-Parr and A. K. Shiva Kumar (Eds). Oxford<br />

University Press, New York.<br />

5. UNDP (2013). International Human Development Indicators<br />

http://hdrstats.undp.org/en/tables/<br />

Estonian Human Development Report 2012/2013<br />

13

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