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Figure 2.1.1 The world’s most successful transition countries 2012 (based on the positions in the Bertelsmann Transformation Index) Status Index Political transformation result Economic transformation result Process management index 45 45 40 40 35 35 30 30 25 25 Bertelsmann Transformation Index 20 15 10 5 0 20 15 10 5 0 Czech Republic Taiwan Slovenia Uruguay Estonia Poland Lithuania Slovakia Chile Costa Rica South-Korea Hungary Latvia political and economies systems, in order to ensure the sustainability of the achieved levels of development (Bertelsmann 2012: 19). Based on the Status Index, the remaining 115 states under observation are divided into four groups: developed states; states with limited development: and states with severely limited development; as well as states with blocked, or failed, development. Bulgaria and Romania, the newest EU Member States, have been classified among the developed states. Based on the 2012 Status Index, Russia is a state with limited development and ranked 65 th . Two years earlier, it was also in 65 th position; earlier, it was in 59 th and 47 th . The research results have been thoroughly analysed by region, by comparing the development trends to date, and by highlighting the future risks and opportunities. In the case of Eastern, Central and South-Eastern Europe (17 states), the greatest risk factors for future development are the narrowing of the opportunities for politicians to act, and increased restrictions placed on the freedom of choice of the member states by the EU and other international economic organisations, on the one hand; and the disenchantment and disappointment of the public, related to political development, on the other hand. In the Central and Eastern European states, innovative development may also be slowed down by an excessive dependence on foreign capital. The sustainability of democratic development may be negatively affected by the immaturity of civil society, a low level of trust in the political institutions, and large generational differences, as well as a high emigration rate. Along with the continued narrowing of opportunities, many of the politicians in this region waver between populist promises and the cultivation of technocratic policies. Under these conditions, the development of education and research activities are strategically important. This field of activity provides the smallest states in the region with the best opportunities for influencing their future outlooks in the global division of labour and competition. At the same time, the analysis related to the Bertelsmann Transformation Index shows that the majority of the states in the region are not sufficiently dedicated to developing strategic plans for the future that could ensure sustainable development (Bertelsmann 2012: 111). Unfortunately, this conclusion totally applies to Estonia also. References 1. Bertelsmann 2004 – Bertelsmann Transformation Index 2003: Auf dem Weg zur marktwirschaftlichen Demokratie. Gütersloh: Bertelsmann Stiftung. A large part available electronically – www.bertelsmann-stiftung.de 2. Bertelsmann 2005 – Bertelsmann Transformation Index 2006: Auf dem Weg zur marktwirschaftlichen Demokratie. Gütersloh: Bertelsmann Stiftung. A large part available electronically – www.bertelsmann-stiftung.de 3. Bertelsmann 2008 – Bertelsmann Transformation Index 2008: Political Management in International Comparison. Gütersloh: Bertelsmann Stiftung. A large part available electronically – www.bertelsmann-stiftung.de 4. Bertelsmann 2009 – Bertelsmann Transformation Index 2010: Political Management in International Comparison. Gütersloh: Bertelsmann Stiftung. S A large part available electronically – www.bertelsmann-stiftung.de 5. Bertelsmann 2012 – Transformation Index BTI 2012: Political Management in International Comparison. Gütersloh: Bertelsmann Stiftung. A large part available electronically – www. bti-project.de 66 Estonian Human Development Report 2012/2013
2.2 Freedom and democracy Martin Mölder and Vello Pettai 2.2.1 Measuring democracy and freedom More indices have been compiled for the assessment of the democracy, freedom and other general social parameters than can be examined in a brief survey. The following describes and evaluates the Estonian position in four of the most popular indices, which all, in somewhat different ways, map political systems, as well as their perspectives of democracy and freedom in the broader context. These include the two indices compiled by Freedom House – Freedom in the World and Nations in Transit. The first is one of the best known indices used to measure democracy and freedom, and is noteworthy for the number of states and the scope of the parameters it utilises for its assessments. Nations in Transit is somewhat more focused, and somewhat more important for the evaluation of Estonia’s position, since it focuses on determining the situation and development level of democracy in the states that were once behind the Iron Curtain. Another index that is monitored is the Democracy Index, which appears in The Economist, the scope of which is comparable to the first index, and which is compiled for only four periods during the last six years. Also Estonia’s position in the Polity IV data series has been tracked, which is included as an index with a relatively specific focus on the democratic and autocratic traits of political systems, and which includes a wide spectrum of states, and is perhaps the most reliable and authoritative index from a social sciences point of view. The Freedom in the World 1 index has been compiled almost every year since 1973, and it currently includes 195 states and 14 disputed territories. The index reflects the political systems of the states and their broader functioning in society from the perspective of liberal democracy through two dimensions – political rights and civil liberties – which are divided into seven sub-dimensions (the electoral process, political pluralism and participation, functioning of government, freedom of expression and belief, rights of assembly and association, rule of law, personal autonomy and individual rights). These two dimensions, along with the seven sub-dimensions, are divided into ten and fifteen sub-questions, respectively, which are used to rate the states based on a five-point scale (0-4). The corresponding assessments are first compiled based on the seven sub-dimensions and the two main dimensions, and thereafter, aggregated into uniform numerical indicators, on a scale of 1 to 7. Based on this scale, the states are, in turn, divided into the following categories: “free” (1 – 2.5), “partially free” (3–5) and “not free” (5.5–7). Although, as the name says, the index measures freedom, it is essentially an index defining liberal democracy. Nations in Transit 2 is also an index for the assessment of democracy compiled by Freedom House, although its focus is somewhat narrower. The index has been compiled since the middle of the 1990s, and it concentrates on the assessment of the post-Communist states that developed after the end of the Cold War as a result of the collapse of the Soviet Union. The index covers 29 states and territories, starting in 1995, and focuses on the assessment of the elections, the media, civil societies, as well as local and national governments, court systems and levels of corruption, from the viewpoint of the development and consolidation of democracy. The states are rated according to the given dimensions on a scale of 1 to 7, and the corresponding assessments are aggregated into a uniform measure of democracy. Based thereon, the states are, in turn, divided into consolidated democracies (1.00–2.99), semi-consolidated democracies (3.00–3.99), hybrid regimes (4.00–4.99), semi-consolidated authoritarian regimes (5.00–5.99) and consolidated authoritarian regimes (6.00–7.00). The Democracy Index published by The Economist 3 has been compiled four times, to date – for 2006, 2008, 2010 and 2011. The index covers 167 states, and assesses the status of democracy by determining the condition of their electoral process and pluralism, the functioning of government, political participation, political culture and civil liberties. The Index relies on a total of twenty questions, and based on the answers, the states are assessed according to each dimension separately, and an average of all the dimensions is computed on a 10-point scale. Based on the results, the states are divided into full democracies (8.00–10.00), flawed democracies (6.00–7.99), hybrid regimes (4.00–5.99) and authoritarian regimes (1.00–3.99). Polity IV 4 currently covers 164 states, and includes the longest period of time – from 1800 to 2010. The index, simultaneously, assesses the democratic and authoritarian traits of political systems on 1 Available at: Available at: http://www.freedomhouse.org/report-types/freedom-world 2 Available at: http://www.freedomhouse.org/report-types/nations-transit 3 Last version available at: http://www.eiu.com/public/thankyou_download.aspx?activity=download&campaignid=DemocracyIndex2011 4 Available at: http://www.systemicpeace.org/polity/polity4.htm Estonian Human Development Report 2012/2013 67
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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:
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
Page 65 and 66: Table 2.1.1 Structure of the Bertel
Page 67: tioning market economies (15 states
Page 71 and 72: Table 2.2.1 Democracy indicators Po
Page 73 and 74: Figure 2.2.2 The distribution of th
Page 75 and 76: would be something that none of the
Page 77 and 78: political participation are general
Page 79 and 80: strongest, while a very small perce
Page 81 and 82: is concerned, Estonia is one of the
Page 83 and 84: Figure 2.4.2 Average circulation of
Page 85 and 86: 2.5 Corruption Jüri Saar In accord
Page 87 and 88: Lithuania, 61%; and in Russia, 69%.
Page 89 and 90: 2.6.2 Intentional homicides in Esto
Page 91 and 92: crime. And thirdly, there was a wis
Page 93 and 94: References 1. Ahven, A. & Tabur, L.
Page 95 and 96: states included in the EU Kids Onli
Page 97 and 98: 2.8 Public assessments of the state
Page 99 and 100: Figure 2.8.4 Changes releated to tr
Page 101 and 102: of the state’s development are en
Page 103 and 104: Table 2.9.1 The positions of Estoni
Page 105 and 106: 3. IEP (2011). Structures of Peace.
Page 107 and 108: 3Welfare and the Quality of Life Es
Page 109 and 110: choices made, not what people say t
Page 111 and 112: Figure 3.1.5 Public social spending
Page 113 and 114: tion agreed upon the social contrac
Page 115 and 116: References 1. Aidukaite, J. (2006).
Page 117 and 118: 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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