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1Human Capital Estonian Human Development Report 2012/2013 Introduction Mati Heidmets Compared to the early 1990s, the approach of the UN Human Development Report (HDR) has become significantly broader today. In the 2010 UN HDR, human development is defined as follows: “Human development is the expansion of people’s freedoms to live long, healthy and creative lives; to advance other goals they have reason to value; and to engage actively in shaping development equitably and sustainably on a shared planet.” In addition to the three traditional yardsticks (health, education, and wealth), new focuses have been added – people’s choices and creativity, and the sustainability of society. However, the central focus of the approach to development remains – people, with their own unique goals and the freedom to choose the means of realising them. The most spirited debates in Estonia revolve around human capital. How much capital did we have in the past? How much do we have now and will have in the future? How healthy and happy do we feel? What determines the choices and life plans of the people in Estonia? The first chapter of the 2012/2013 EHDR examines Estonia’s developments from the viewpoint of human capital. Attention is paid to population development, health and education, as well as values. The focus of this report is Estonia in the global context. We are attempting to position Estonia’s development against the background of the rest of the world, by combining various yardsticks and approaches. In addition to the global view, we feature a separate group of “reference countries.” These are countries that, in a relatively short time, have made significant progress in both the human development rankings and other indicators related to development. It seems that comparison with these countries, which have made rapid and substantive progress, could be interesting and instructive for Estonia. The countries that have been chosen as reference countries are relatively small ones from various regions of the world: Slovakia, the Czech Republic, Hungary, and Slovenia in Central and Eastern Europe; Austria, Ireland, Switzerland, the Netherlands, Denmark and Finland, representing Western and Northern Europe; and also New Zealand, South Korea, Singapore, Chile, Uruguay and Costa Rica. The reference countries are not used as absolute comparison partners throughout the report; they are used only where the appropriate data exists, or the comparison is suitable. Estonian Human Development Report 2012/2013 7
Page 1: ESTONIAN HUMAN DEVELOPMENT REPORT 2
Page 4 and 5: Table of Contents 1 Human Capital /
Page 6 and 7: Dear Reader Since the moment when E
Page 10 and 11: 1.1. UN Human Development Index Aad
Page 12 and 13: equal dimensions (see, for example,
Page 14 and 15: Figure 1.1.5 The health sub-index:
Page 16 and 17: 1.2 Population Allan Puur, Luule Sa
Page 18 and 19: Table 1.2.2 Main indicators of popu
Page 20 and 21: 18 Hajnal line The Hanjal line is o
Page 22 and 23: 1.2.4 Mortality In regard to the se
Page 24 and 25: County. From the viewpoint of the s
Page 26 and 27: tries of Eastern Europe. In the 198
Page 28 and 29: for Eastern Europe was replaced by
Page 30 and 31: entry into the stage of receding ca
Page 32 and 33: 1.3 Education Anu Toots, Triin Laur
Page 34 and 35: 1.3.2 Estonia’s position in the e
Page 36 and 37: even more than 20% more) lays the f
Page 38 and 39: monitoring of teaching, the schools
Page 40 and 41: Figure 1.3.10 Estonia’s place in
Page 42 and 43: Table 1.3.5 Strengths and weaknesse
Page 44 and 45: girls, i.e. during this time period
Page 46 and 47: Figure 1.4.3 Usage of tranquilisers
Page 48 and 49: Based on the 2010 HBSC survey, the
Page 50 and 51: 1.5 Values Anu Realo The attention
Page 52 and 53: the cultural variations of values (
Page 54 and 55: question cannot be given before the
Page 56 and 57: Figure 1.5.4 Percentage of the popu
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so in the future. Figure 1.5.7 show
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of possible problems with the metho
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60 Estonian Human Development Repor
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2.1 General success of the developm
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Table 2.1.3 Development of the tran
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Figure 2.1.1 The world’s most suc
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Figure 2.2.1 Assessments of Estonia
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Estonia has always received a low a
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in relationship to the other states
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2.3 Civil society and social capita
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Table 2.3.3 Comparison of Estonia
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2.4 The information environment and
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Table 2.4.3 Freedom on the Net 2011
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Table 2.4.6 Availability of nationa
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Table 2.5.2 Assessment of the level
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2.6 Crime and the population’s se
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of the population statistics varies
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Figure 2.6.5 Development factors re
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2.7 Children’s safety in the new
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of the other states, Estonian paren
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Figure 2.8.2 Trust in the parliamen
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Figure 2.8.5 Changes related to tru
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2.9 Estonia’s peacefulness and se
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social cohesion, and on the other,
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104 Estonian Human Development Repo
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3.1 The concepts of welfare Kaie Ke
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Although the Easterlin paradox has
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of Estonia, and the other post-Comm
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2006). Thus, it can be asked, are t
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3.2 Income inequality and equality
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Figure 3.2.2 Income inequality afte
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118 Figure 3.2.5 Ranking of countri
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indicators with those for women’s
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3.3 Subjective well-being Mati Heid
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Table 3.3.2 The ranking based on th
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ensuring this long and happy life d
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3.3.4 In conclusion When examining
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Index components EU measures OECD m
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132 Figure 3.4.1 Estonia’s positi
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Figure 3.4.3 People’s self-assess
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the obesity index in the U.S. is ab
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3.4.12 In conclusion This chapter l
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Figure 3.5.2 Estonia’s Ecological
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Figure 3.5.4 Greenhouse gas emissio
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Figure 3.5.8 The energy intensity o
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Summary: Paradoxes of the Estonian
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4.1 Economic environment Jüri Sepp
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Figure 4.1.2 Components of Estonian
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to the conclusion that differences
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situation. At the same time, a seri
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4.2 The wealth and growth potential
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Figure 4.2.1 Assessment of the comp
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foreign countries are also included
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equires substantial capital replace
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In addition to individual indicator
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was at the best working age (20 to
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corresponding indicators for Lithua
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References 1. Anspal S., Järve, J.
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Table 4.4.1 Ranking of states based
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are weakest include Estonia’s man
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Table 4.4.5 The productivity level
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References 1. Coelli, T. J., Prasad
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is Denmark, which, thanks to the hi
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growth starting in the later 1990s,
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• The high relative importance of
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SMEs, and especially, on supporting
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the economy. Lead by Fundacion Chil
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5.1. Globalisation and Estonia Erik
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foreign trade. In our chosen refere
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ferent viewpoints. For instance, wh
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which groups of respondents dominat
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If the respondents’ understanding
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5.4 Future perspectives Erik Terk,
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Table 5.4.2 Important cooperation r
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6Summary Estonian Human Development
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that repudiates the GDP-centric min
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Juhan Kivirähk is Senior Researche
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Tiit Tammaru (PhD) is Professor of
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ESTONIAN HUMAN DEVELOPMENT REPORT 2
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