Social Change and Economic Challenge
The Baltic states, Latvia, Lithuania, and Estonia, experienced Russian control and domination for half a century. However, in the late 1980s the three states declared their independence from the Soviet Union. Yet, the heady feelings of those days have passed, now that economic, political, and social realities have begun to appear, realities that demonstrate it is not an easy process to build vital democratic states from the left-over piles of communist debris. Still, Estonia has fared much better than its Baltic counterparts because of its economic and political reforms instituted after gaining independence as well as its beneficial and sound relationship with its successful neighbor, Finland. Political, economic, and social reforms have all occurred in Estonia, but each area of change is still plagued by problems that must be addressed for optimal long-term growth and success. This analysis will discuss the types of reforms that have occurred in these areas since Estonia claimed its independence, as well as highlighting the problems that still remain. A conclusion will address the likely future success of Estonia and what changes must occur in the political, economic, and social realms to make this success a reality.
In the early 1990s, the first wave of reformers took control of the Estonia government. While this occurred in 1992, two short years later the same reformist government would be dissolved. However, this government of reformers focused on the economy which was in need of major reforms after abandoning communist control and dependency on the Soviet market, “They concentrated on macroeconomics. They abolished tariffs, freed prices, made tax ultra-simple, pegged the currency to the D-mark, sold off swathes of industry to foreigners, and created the basis for one of the perkiest post-communist economies. When Russia’s economy froze over, Estonia was strong enough to catc...