DEVELOPMENT
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5.3<br />
Development policies<br />
Erik Terk, Silja Lassur<br />
The level of institutional development in Estonia has<br />
improved consistently and is among the best in Central and<br />
Eastern Europe. At the same time, criticism, about some<br />
aspects of the current governance practices in Estonia, has<br />
started to increase. It has been asserted that governance, in<br />
Estonia, is characterised by a shift towards a universalistic<br />
and standard governance culture and procedures. Estonia’s<br />
governance practices are quite proper, but have certain<br />
shortcomings – its administrative and reactive nature, and<br />
a tendency towards autonomous operation of individual<br />
spheres of governance, rather than their cooperation and<br />
the involvement of various social groups in policymaking.<br />
Such a governance system tends to consider all activities to<br />
be equally important, and, in this framework, it is difficult<br />
to shape and focus on developmental preferences. A more<br />
focused and pro-active form of state governance is needed<br />
(Eesti 2010, b). This kind of criticism can also be found in the<br />
international surveys of Estonia’s institutional development,<br />
which are otherwise quite positively inclined (OECD 2011).<br />
5.3.1<br />
Policy priorities and the state<br />
The issue of focusing also applies to economic development<br />
and economic policies . Estonia has been praised for its<br />
success in maintaining macroeconomic stability, and this<br />
under very difficult external conditions. At the same time,<br />
it can be asserted that none of the conspicuously successful<br />
states in Europe or Asia have been able to develop their<br />
global competitive advantages based only on a macroeconomic<br />
stability and a favourable business environment<br />
(Chang, 2001). In this connection, the issue of “experiment-based<br />
economic policies” has been raised – of the<br />
need for the state to enact measures for the creation of new<br />
growth areas in the economy 1 (Kuusk, 2012). In Estonia,<br />
discussions about new growth areas and smart specialisation<br />
have gained momentum (especially at the initiative of<br />
the Estonian Development Fund), but this has not changed<br />
the dominant governance culture, or the economic policy<br />
dogma. Actual shifts related to the discovery and implementation<br />
of new growth areas have yet to be noticed.<br />
The elite groups, who participated in the survey,<br />
were quite unanimous regarding the focusing of policies.<br />
The prevailing position was that Estonia needs more<br />
focused policies and clearer priorities – this was the<br />
answer given by 80% of the respondents. The entrepreneurs<br />
and economic policymakers were the most resolute<br />
concerning this topic. Focuses and priorities do not<br />
necessarily have to come from the “top”; they can also<br />
develop as the result of the collaborative processes of people<br />
representing different social groups. However, the process<br />
of priority setting requires coordination on the level<br />
of the society as a whole. Therefore, we cannot ignore the<br />
necessary role of the state institutions in this process.<br />
We asked the representatives of Estonia’s elite groups to<br />
choose policy spheres from a pre-determined list, which<br />
required the strengthening of national policies, in the<br />
near future. The results are shown in Figure 5.3.1.<br />
Figure 5.3.1<br />
Support for increasing the state’s role in various policy areas, %<br />
Total PhDs Cultural figures Politicians Economic policymakers<br />
90<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
90<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
Ensuring regional<br />
development<br />
Improving<br />
social security,<br />
supporting<br />
people in need<br />
Organising<br />
education<br />
Promotion<br />
of research<br />
Shaping businessand<br />
investmentsfriendly<br />
economic<br />
environment<br />
Health<br />
insurance and<br />
promotion of health<br />
Promotion of<br />
innovation<br />
Management of<br />
migration processes<br />
Percentage<br />
Shaping Estonia’s<br />
economic structure<br />
Improvement of<br />
natural environment<br />
Management of<br />
ethnic relations<br />
in Estonia<br />
Promotion of<br />
culture<br />
1 Total growth areas are not considered to be traditional economic sectors, but narrower fields of activity which frequently overlapping different<br />
traditional sectors.<br />
Estonian Human Development Report 2012/2013<br />
201