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If the respondents’ understanding of the need for greater focus in state policies was almost unanimous, a clearly prevailing support for the strengthening of the state’s role was achieved only in regard to regional policies, social insurance and the organisation of education. Much-discussed areas, like the promotion of healthcare, or innovation policy, were clearly “under the radar”. Increasing the role of the state in structural policy also did not receive great support, although, as we see from sub-chapter 5.2, industrial and technological policies were considered to be one of the most sensible opportunities for responding to the challenge of globalisation. The different elite groups suggested different areas where they thought the state could take the initiative – for example, the entrepreneurs suggest education, healthcare and the improvement of the economic environment; the PhDs suggest education; the cultural figures suggest research and innovation (even more than the PhDs), etc. The last two elite groups are the greatest supporters of state intervention, while those working in the field of economy seem to be more distrustful of the state, or rely on it less. The positions of the representatives of the elite groups overlapped more when it comes to the growth areas in economy (Table 5.3.1). This was primarily expressed in the unanimous preference for ICT as the most important area. Tourism, leisure industry, and new technologies in energy production, were favoured by close to 50% of the respondents; and the green economy, transit and logistics followed close behind. Therefore, there was no clear answer to the question of what, besides ICT, should be a priority for Estonia’s economic development. It is noteworthy that neither creative industries, nor international financial services were supported by the groups that were queried (at least not now). 5.3.2 Attitudes of the elite groups Below, we attempt to underline some of the generalised attitudes of the respondents and the interconnections between these attitudes. One important indicator is the attitude to the possibilities for openness, keeping pace with the changing world. This applies to global processes as well as the EU level. We constructed an index to measure openness, based on the positive answers given to 4 questions about globalisation and the EU. A second index was created based on the assessments given to the trends in various spheres during the last 10 years. Figure 5.3.2 shows how these two composite indicators relate – firstly, to the idea of reduction of income differences as a precondition for successfully coping with globalisation, and secondly, to the respondent’s wishes to strengthen the role of the state, in various spheres of activity. Do the correlations of Figure 5.3.2 confirm the cliché about the contradiction between the people who are rejecting global trends, disappointed in market economy developments to date and supportive of an increased role for the state; and, on the other hand, the people with open views, who are satisfied with the market economy reforms and supportive of the strengthening of the state’s role? Actually, they do not. Based on Figure 5.3.2 we can conclude that the desire to strengthen the role of the state is Table 5.3.1 Priority areas for Estonia’s economic policy, percentage of support by group Information and communications technology (ICT) New technologies in power production Economic policymakers associated with a critical attitude toward the development that has taken place, as well as an inclination to consider the reduction of income differences to be important; but the openness index has no statistical connection to the idea of strengthening of the state’s role (nor with the desire for more focused policies). Considering significance of the aspiration for openness and the equalisation of incomes as broader indicators, let us take a closer look at the connection between the two attitudes. When combining these two indicators, the respondents were divided into four groups: • A – the “globalists” (support Estonia’s continued integration into the global economy and the EU) who support the reducing of the income gap – 37% of the respondents; • B – the “globalists” who reject the need for reducing of the income gap – 33% of the respondents; Politicians Cultural figures PhDs Total 76 70 74 68 72 51 63 40 43 50 Tourism and the leisure industry 45 56 46 52 50 Green economy 45 42 51 45 46 Transit and logistics 42 51 46 41 45 Creative industries 27 30 57 25 33 Agriculture 18 28 26 27 24 International financial services 25 21 17 18 21 Figure 5.3.2 Correlations between the various attitudes Level of criticism towards past changes 0.40 Need to strengthen the role of the state -0.33 0.38 0.39 Openness toward the world -0.18* Need to reduce income differences Correlation is significant at the p=0.01 level; *Correlation is significant at the p=0.05 level. 202 Estonian Human Development Report 2012/2013
• C –the “Estonia-centred” supporters of income gap reduction. They are critical of integration with the world and the EU, as well as support the reduction of income differences – 23% of the respondents; • D – the “Estonia-centred” rejecters of income gap reduction. They are not happy about the policies that promote globalisation or income equality – 11% of the respondents. The globalists favouring the income gap reduction include an above average share of PhDs and below average share of politicians, while the group of globalists that rejects income equalisations has a greater representation of economic elite and, especially, entrepreneurs. We find a large number of cultural figures, but also politicians, among this Estonia-centred group, which favours income equalisation. Yet, of both cultural figures and politicians, a minority (less than a third) belong to the above group. Among the economic elite this combination of attitudes is clearly unpopular. Groups A and C tend to favour increasing the role of the state, more than the others do. Both of these groups very strongly support increasing the role of the state in regional policies, and the promotion of educational activities. Group C, characteristically, places greater emphasis on the role of the state in social security, in the organisation of ethnic relations and in healthcare policies, but also in the development of economic structures. For this part of globalists who favour equalisation, the corresponding spheres of activity Table 5.3.2 Support for various organisational forms in policymaking, % Entrepreneurs Economic policymakers Politicians Cultural figures PhDs Total are the promotion of innovation, management of migration, and the improvement of the environment. The globalists that reject income equalisation also indicate less than average support for increasing the role of the state in the spheres of activity under observation. However, more than 50% of them still support the strengthening of the state’s role in regional development and the organisation of education. 5.3.3 Cooperation and development networks in the shaping of policy In addition to the content of policies, an important issue is the matter of the mechanisms used to create and realise these policies. Some theoreticians believe that at least five or six variants can be differentiated, depending on the level of state domination, starting from total statism, where the state is not interested in any kind of involvement or feedback, and ending with the “Dutch” approach to procedures, in which policies are actually developed by the concerned parties, and the state controls the process from a distance and indirectly (Peters &Pierre, 2006). In this study, we differentiated three methods: • Civil servants authorised by the politicians are the developers and the organisers of the realisation process. The goal is speed and efficiency, and if necessary, experts are invited to participate in the process of policymaking. Consulting with interest groups is not considered important –if it is done, it tends to be a formality. • In the course of creation (and if possible, in the implementation) of the policies, meaningful cooperation takes place with the umbrella organisations of societal institutions (e.g. employers, employees, organisations representing the rural population, professional associations, etc.). However, narrower interest groups or individuals are not allowed access to the process. Establishing objectives and developing solutions is primarily the task of politicians and state officials When establishing objectives and developing solutions, the state should organise cooperation with the umbrella organisations of the important social partners (corporativist option) The establishment of objectives and development of solutions must be organised so that it is possible for all the interest groups and individuals to participate (network-based option) 15 2 5 3 11 6 31 24 33 23 50 33 54 74 63 74 39 61 • Network-type cooperation, in which all the interested parties, including individuals, are allowed to participate and to express their opinions. We got the following results when we asked the respondents to indicate which form of policymaking they preferred (Table 5.3.2). If we exclude PhDs the network-based option for policymaking was favoured overwhelmingly. The question is, to what extent does this result reflect strong democratic aspirations, and to what extent a limited trust in the state, or the weakness of the representative organisations in Estonia. The most favoured option may be very promising, and if it succeeds, it could open up important opportunities for the social mobilisation of the population in economy-related matters; but in practice, this is far from easy to implement. References 1. Chang, H.-J. (2001) Kicking Away the Ladder. Development Strategy in Historical Perspective. Anthem. 2. Kuusk, K. (2012). Eksperimenteeriv majanduspoliitika. Tallinn: Estonian Development Fund. 3. OECD (2011). OECD Public Governance Reviews. Estonia. Paris. 4. Peters, B.G., & Pierre, J. (2006) Governance, Government and the State, The State. Theories and Issues. Ed by C. Hay & D. Marsh. Basingstoke (UK) and New York: Palgrave Macmillan. 5. Võtmevaldkond: Riigivalitsemine. Ekspertrühma raport. Estonian Development Fund 2010. Estonian Human Development Report 2012/2013 203
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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
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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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Page 155 and 156: Figure 4.1.3 Components of economic
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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
Page 185 and 186: Table 4.5.2 Comparison of innovatio
Page 187 and 188: Table 4.5.4 Comparison of the indic
Page 189 and 190: in order to make the R&D potential
Page 191 and 192: It is characteristic of the South K
Page 193 and 194: mechanisms for increasing their sta
Page 195 and 196: Globalisation and Policy Patterns 5
Page 197 and 198: When Estonia regained its independe
Page 199 and 200: 5.2 The impacts of globalisation an
Page 201 and 202: Table 5.2.2 Support of the differen
Page 203: 5.3 Development policies Erik Terk,
Page 207 and 208: Figure 5.4.1 Support for the possib
Page 209: Summary Erik Terk Estonia is part o
Page 212 and 213: ehavioural patterns. Therefore, it
Page 214 and 215: EDR 2012/2013 authors Clemens Buche
Page 216 and 217: EDR 2012/2013 authors Alari Purju i
Page 218: Editor-in-Chief: Mati Heidmets Prod
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