DEVELOPMENT
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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 />
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