Re: E-stonia success hailed by the Guardian


vello wrote:
> martin wrote:
> > gricer wrote:
> > > 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.
> >
> > So zero corporate tax on reinvested profit and flat tax rate has no
> > effect at all?
> >
> > > Why? Because of Estonia's strategic
> > > position - its closeness to Finland and its function as a transit
> > > economy, serving Russia and the CIS.
> >
> > How is that possible, given that Russia has imposed double tariffs upon
> > Estonian goods and services until very recently?
> >
> > >
> > > 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.
> >
> > So you reckon that Estonia would have remained with the Ruble, except
> > for some event forcing their hand?
> >
> > >
> > > 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....
> >
> > Looks like the Russia and Eastern Europe was duped by this Estonian
> > myth, introducing their own flat rate tax. Gullible people.
> >
> > Regards,
> > Martin
>
> Estonia have been extremely lucky place to be by me - rapid
> developments, new ideas, fast decicion making. Sure there is a lot of
> things to do yet, but I'm not so pessimistic about "economy with no
> coherent development strategy". Don't know what you had in mind, but if
> something not works, we just probably don't need it?

Perhaps he had in mind a centrally planned economy?

Regards,
Martin

.

Relevant Pages

  • Re: Message from spinoza1111
    ... This could have been topical, if you'd stuck to the burden of transition, ... almost everything about British culture and economy except its programming ... The question is whether one can learn about programming in a literary ... The topicality you seek is Fukuyamian, ...
    (comp.programming)
  • Re: E-stonia success hailed by the Guardian
    ... >>> So zero corporate tax on reinvested profit and flat tax rate has no ... given that Russia has imposed double tariffs upon ... > for whole economy? ... Estonian Food Exports Take Run-around Routes to Russia ...
    (soc.culture.baltics)
  • Re: Gordon B and MPs Expenses
    ... Martin wrote: ... You leave Allen alone. ... NOBODY is supposed to like to read his stuff. ... were in economy I believe. ...
    (uk.media.tv.misc)
  • Re: Sally Ride Endorses Barack Obama
    ... we ruin our economy in an attempt to rush the transition beyond what ... Oil from new drilling won't be available right away. ...
    (sci.space.policy)
  • Re: Europes baby bust signals major change
    ... Following up to Martin ... it's not necessary for an economy to grow. ... Mike Reid ... Prev by Date: ...
    (rec.travel.europe)