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Economy and Culture of Estonia

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  1. 1. Economy and Culture of Estonia
  2. 2. Index <ul><li>This presentation contains information about the following topics: </li></ul><ul><li>About Estonia in general </li></ul><ul><li>Estonians Economy </li></ul><ul><li>Estonians Culture </li></ul><ul><li>Cultural dimensions of Estonia </li></ul>
  3. 3. About Estonia in general <ul><li>1918 the independence of Estonia has been proclaimed </li></ul><ul><li>From 1939 to 1991 Estonia was under Russia’s domination </li></ul><ul><li>Except for the years 1941 to 1944, Estonia came under the rule of Germany </li></ul><ul><li>1991 Estonia became again independent </li></ul><ul><li>Estonia has joined the EU in 2004 </li></ul><ul><li>Each year since 1999 the gross domestic product has been increased at least 5% </li></ul><ul><li>Gross domestic product (2005): 10,5 Mrd. €, that is 7‘800 € per inhabitant </li></ul>
  4. 4. Economy
  5. 5. Economy: Employment Market <ul><li>Unemployment: </li></ul><ul><ul><li>It has been decreased from 10.7% to 4.1% (April 2008) within the last three years </li></ul></ul><ul><ul><li>Regional differences: </li></ul></ul><ul><ul><ul><li>in the north (with Tallinn, the economic centre of Estonia): 4% unemployment, it has even a lack of qualified employers </li></ul></ul></ul><ul><ul><ul><li>in the north-east of Estonia (Russian speaking part): 8.5% of unemployment </li></ul></ul></ul><ul><li>Increase of workplaces in the service and building sector </li></ul><ul><ul><li>Service sector: transport, warehousing and communication </li></ul></ul><ul><li>Decrease of workplaces in the agriculture </li></ul><ul><li>Forecast: In the next three years, there will be an increase of workplaces in the branches tourism, trading, building sector, wood and metal </li></ul>
  6. 6. Economy: Production <ul><li>Main branches of Industry (2002): </li></ul><ul><ul><li>Wood-, paper- and furniture Industry (25%) </li></ul></ul><ul><ul><li>Food Industry (28%) </li></ul></ul><ul><ul><li>High increase in the electronic industry and in the machine as well as vehicle parts building industry (18%) </li></ul></ul><ul><ul><ul><li>Example: one of the worldwide biggest companies for safety belts is in Estonia (Norma in Tallinn) </li></ul></ul></ul>
  7. 7. Economy: External trade <ul><li>Trading partners: Finland, Sweden, Latvia and Lithuania, Russia, Germany </li></ul><ul><li>Export products: 27% of all export products are machines and machine parts, 13% are wood and wooden products, 9% are textiles, 8% metals and metal products, 7% food </li></ul><ul><li>Balance of trade is negative as Estonia has more imports (6.7 bn €) than exports (4.7 bn €) </li></ul>
  8. 8. Economy: Transport <ul><li>Road </li></ul><ul><ul><li>Predominately, only roads which have a national significance are asphalted, but each year there are more and more roads which become asphalted </li></ul></ul><ul><li>Railway / Bus </li></ul><ul><ul><li>For journeys within Estonia, the railway is not very significant since the failed privatisation of the railway  a lot of lines have been put out of service </li></ul></ul><ul><ul><li>Public transport takes almost completely place by buses </li></ul></ul><ul><li>Navigation on the Baltic Sea </li></ul><ul><ul><li>There are three harbours for high-see navigation </li></ul></ul><ul><ul><li>Ferry to Finland and Sweden </li></ul></ul>
  9. 9. Culture
  10. 10. Culture: Population <ul><li>Population of Estonia (2007): 1‘342‘000 inhabitants, this is 30 inhabitants per km 2 </li></ul><ul><li>Almost one third of the population lives in Tallinn </li></ul><ul><li>68.6% are of Estonian origin </li></ul><ul><li>25.7% have a Russian origin </li></ul><ul><li>Small groups are from Belarus, Ukraine and Finland </li></ul><ul><li>In Tallinn 45% of the inhabitants are not from Estonia </li></ul><ul><li>The integration of Russian and other foreign people has not been successful </li></ul><ul><li> Estonian people are more often in a leading position, Russian people are more often in service sector and branch of production </li></ul>
  11. 11. Culture: Influences on the culture <ul><li>The culture has been shaped by its regimes from Denmark, Germany, Sweden and Russia </li></ul><ul><li>From 1850, there has been a Russification under the regime of the tsar </li></ul><ul><li>This day, Estonian culture orients itself to Finland (affinity of the two languages) </li></ul>
  12. 12. Culture: Religions <ul><li>Religion is important only for a minority of Estonia's population. </li></ul><ul><li>The majority of the Estonian people are non-denominational </li></ul><ul><li>Only 30% of the population are members of a Christian church (evangelic, orthodox, baptism or roman-catholic) </li></ul><ul><li>The ten most important Christian church of Estonia have joint forces to the council of Christian churches of Estonia. </li></ul><ul><li>A particularity are the 5‘000 old-orthodox people who escaped to the Russian borderland in the 18th century. </li></ul><ul><li>Besides, there are some small Jewish and Islamic communities </li></ul>
  13. 13. Culture: Song and Dance Festival <ul><li>1869 first singing festival as a jubilee for 50 years without bondage </li></ul><ul><li> for the former mastery this festival was not a political event. In contrast, it was important for the cultural and political self-determination for Estonian people. </li></ul><ul><li>The singing festival has been consistently organised also during the Russian regime under the pretext of a Russian public holiday </li></ul><ul><li>In 1988 the Estonian people have claimed for the first time their independence during a singing demonstration (singing revolution) </li></ul><ul><li>Each 5th year a singing festival takes place </li></ul>
  14. 14. Culture: Way of communication <ul><li>93% of the population has a mobile phone (2004) </li></ul><ul><li>The law guarantees an access to the internet free of charge </li></ul><ul><ul><li>There are 700 public terminals in post offices, in libraries and in small shops which assures that all people can use internet even if they don’t have an own computer </li></ul></ul><ul><ul><li>Each school has internet access </li></ul></ul><ul><ul><li> unique settlement in Europe </li></ul></ul>
  15. 15. Cultural dimensions of Estonia <ul><li>A culture can be described by five dimensions: </li></ul><ul><li>Power distance </li></ul><ul><li>Individualism </li></ul><ul><li>Masculinity </li></ul><ul><li>Uncertainty avoidance </li></ul><ul><li>Time </li></ul><ul><li> In the following, those dimensions will be described and defined </li></ul>low high low high low high low high low high
  16. 16. Cultural dimensions: Power dimension <ul><li>Power dimension: </li></ul><ul><ul><li>Has a great income inequality in order that social transfers with taxes are necessary </li></ul></ul><ul><ul><li>High economic growth (GDP increases each year about 5%) </li></ul></ul><ul><ul><li>Until 1991 any private ownership of land was illegal, all industry, service and other business belonged to the state </li></ul></ul><ul><ul><li>The property real estate market in Estonia is growing rapidly </li></ul></ul><ul><ul><li>There are no limitation for foreign investors in the real estate market </li></ul></ul><ul><ul><li>In 2001 there are more than 90% of the dwellings in private ownership </li></ul></ul><ul><ul><li> medium to high degree of the power dimension </li></ul></ul>
  17. 17. Cultural dimensions: Individualism <ul><li>Individualism </li></ul><ul><ul><li>Diversity in religions: 30% Christian, majority non-denominational , some Jewish and Islamic communities </li></ul></ul><ul><ul><li>Diversity in ethnic: 68.8% are Estonians, 25.6% Russians, a few people are from Byelorussia, Finland </li></ul></ul><ul><ul><li>90.9% of Estonians citizen are born in Estonia (year 2000) </li></ul></ul><ul><ul><li>Diversity in language: most people speak Estonian (83.4%), but there are also Russian speaking inhabitants (15.3%) </li></ul></ul><ul><ul><li>Power of the government: Parliament is elected by the Estonian people. The government of Estonia is approved by the Parliament </li></ul></ul><ul><ul><li> Low degree of individualism </li></ul></ul>
  18. 18. Cultural dimensions: Masculinity <ul><li>Masculinity </li></ul><ul><ul><li>21% of the candidates in the Estonian Parliament are women </li></ul></ul><ul><ul><li>Lack of female managers (4% vs. 96% male) </li></ul></ul><ul><ul><li>Women earn about 75% of the wages what their male counterparts earn </li></ul></ul><ul><ul><li>2/3 of the women who are in the labour market, perform all of the home chores. Only 22% of the women share these chores equally with their partner </li></ul></ul><ul><ul><li>Maternity benefit: Working mothers can compensate 100% of their wages during a period of 140 days receive before and after childbirth </li></ul></ul><ul><ul><li>Average working hours per week in Estonia 41.2 </li></ul></ul><ul><ul><li> Medium to high degree of masculinity </li></ul></ul>
  19. 19. Cultural dimensions: Uncertainty avoidance <ul><li>Uncertainty avoidance </li></ul><ul><ul><li>Estonia tend to be a progressive country: E-Services such as E-elections, paying by mobile phones (the two largest banks of Estonia offers the possibility to make payments by mobile phones. It is also possible to by mobile phones in 2000 stores such as in motels, beauty salons), M-parking (it is also possible to pay for parking cars by mobile phones) </li></ul></ul><ul><ul><li>Characteristics of Estonian’s people: Estonian’s want to have proofed everything scientifically. Nevertheless they are open for innovations. In every Estonian is a battle between conservatism and a sense of adventure. </li></ul></ul><ul><ul><li>The companies are required by law to pay social tax for their employees (for pension and health insurance) </li></ul></ul><ul><ul><li> Medium degree of uncertainty avoidance </li></ul></ul>
  20. 20. Cultural dimensions: Time <ul><li>Time </li></ul><ul><ul><li>Estonia is a dependent country in the terms of energy and energy production. In recent years many local and foreign companies have been investing in renewable energy sources. </li></ul></ul><ul><ul><li>The importance of wind power increases continuously </li></ul></ul><ul><ul><li>Narva Power Plants is a power generating complex which generates about 95% of the total power production of Estonia. It is one of the World biggest oil shale-fired thermal power plants  release of aggressive sulphur dioxide and other heavy metal gases but the money for modernisation of the is missing </li></ul></ul><ul><ul><li> Medium degree of time </li></ul></ul>
  21. 21. Further Literature <ul><li>Overview of the mentality of Estonia: Müller, Susanne, Management Guide Estland, Reihe Wirtschaft und Kultur Band 3, o.O., 2006, ISBN 13 – 978-3939044024 </li></ul><ul><li>Impressions of a trip in the Baltic States : Rada Uwe / Schwand, Inka, Baltische Begegnungen: Unterwegs in Estland, Litauen, Lettland, Berlin, 2008, ISBN 978-3-86124-620-6 </li></ul><ul><li>About the diffusion process of internet in Estonia: Sommer, Reet, Estlands Weg in die Informationsgesellschaft: Ökonomische, soziale, politische und kulturelle Faktoren, o.O., 2007, ISBN 13 – 978-3836417082 </li></ul><ul><li>Information about attitude, beliefs and behaviour in Estonia: Thomson, Clare, Estonia – Culture smart!, o.O., 2007, ISBN 978-1-85733-353-4 </li></ul>
  22. 22. Further Information <ul><li>Interview with prime minister of Estonia Mart Laar about the human basic law of free internet access:,1518,488083,00.html , published 22.06.2007 by Spiegel Online </li></ul><ul><li>The next election of the Parliament in Estonia can be done by using the cell phone: , published 11.12.2008 by Die </li></ul><ul><li>Bargaining in the Baltic states:,2828,479929,00.html , published 02.05.2007 by Manager Magazin </li></ul><ul><li>Economic crises in the Baltic States, the end of the Estonia-Boom:,1518,574531,00.html , published 31.08.2008 by Spiegel Online </li></ul>
  23. 23. References Websites (15.12.08): Estonia in general (15.12.08): Estonia in general (15.12.08): Narva Power Plant (16.12.08): Estonian statistics, property of dwellings (16.12.08): Further literature http:// =Estonia (15.12.08): pictures of Estonia (15.12.08): cultural dimensions (16.12.08): Estonians environment (16.12.08): Property rights in Estonia (15.12.08): Statistics Estonia (15.12.08): Estonians government and culture/economy of Estonia Literature Progasaar, Kristina, Estland, Land, Leute, Kultur, o.O ., 2005, ISBN 9949-411-42-4: Estonians culture Schameitat Klaus, Estland entdecken, Berlin, 2003, ISBN 3-89794-036-1: environment, economy and culture of Estonia