Re: E-stonia success hailed by the Guardian


TomiA wrote:
> Estland wrote:
> > Another fairy-tail story on the so called "E-stonia" phenomenon this
> > time by the Guardian
> > http://society.guardian.co.uk/e-public/story/0,,1648381,00.html
> >
> It's interesting that two naighbouring countiries, Estonia and Finland,
> have recently received international praise for almost exactly opposite
> reasons, Finland for being a welfare state and yet compatitive, Estonia
> for econmical liberarism. Which one of the two countries has to give in,
> will Estonia become a welfare state like Finland or does Finland have to
> give up welfare state?

Unfortunately, Estonia is always used as an 'example' of successful
economic transition by transitologists, free market airheads, and
assorted antlanticist neo-liberals. It was ever thus. The trail of
hagiography of this kind goes back to Mart Laar (remember him?) who
made a kind of cottage industry out of this kind of propaganda.

The truth is much more complex, however. The real transition catalyst
was the rapid growth of of an independent and entrepreneurial service
sector. This would have happened anyway, irrespective of the policies
of the administration at the time. Why? Because of Estonia's strategic
position - its closeness to Finland and its function as a transit
economy, serving Russia and the CIS.

There was no real free-market transition strategy. Decisions, such as
the introduction of the kroon and several privatisations, were taken in
response to events, not as part of some master plan.

This is not to disparage what has been achieved. Far from it! But one
must look at areas of the economy where there is still no coherent
development strategy, and realise that one cannot persist in quoting
these free-market myths for ever....

Dr. Barry Worthington

.

Relevant Pages

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