Introduction to Estonia – Part 8

Political Parties

Since independence, Estonia has been a multi-party democracy with a vengeance. No single party has been able to command an unchallenged majority in parliament. Parliament is dominated by two major parties, the Centre Party (Keskerakond), and Res Publika. Each has around 30% of the seats in parliament. Other significant political players include the Estonian Reform Party (Reformierakond), the Estonian People' s Union (Rahvaliit), the Pro Patria Union (Isamaaliit) and the Social Democratic Party (Moodukad). These count for most of the other seats on an almost equal basis. However, in practice, there is relatively little difference between any of these political parties. They mostly seem to hold views that believe in a centre-right, free-market stance and favour greater integration with Western Europe. Some of the parties are little more than single-issue groups or vehicles for individual leaders.

Unlike some former Soviet republics where a number of voters still hanker for the certainties of Stalinism, Estonia has little nostalgia for the Soviet era. Symbols such as the hammer and sickle, statues of Lenin and other revolutionary heroes, and even Soviet war memorials have largely been eradicated or banished. Many have been moved to museums such as the Museum of Occupations. Even the small Estonian United Russian People' s party (EUVRP) which claims to speak for the Russian speaking minority does not advocate a return to communism. In such a small country, there is little cause for conflict between central government and regions, but for administrative purposes, Estonia is divided into 15 counties or maakonnad.

The Economy

Even under Soviet rule, Estonia was relatively prosperous, thanks mainly to trade with its neutral neighbour Finland, which enjoyed a special economic and political relationship with the USSR. Since independence, Estonia has become one of the more economically successful post-Soviet states, with GDP growing at 6 percent, low unemployment and low inflation.

As a new member of the World Trade Organisation and the European Union, Estonia has made an efficient transition to a modern market economy, including the pegging of its currency, the kroon, to the euro. The economy benefits from strong electronics and telecommunications sectors and is greatly influenced by developments in Finland, Sweden and Germany, its three major trading partners.

Heavy industry, which played a major part in the economy during the Soviet period, now takes second place to the service sector, which accounts for around two-thirds of economic activity and employs around 70 percent of the total workforce. Industrial sectors include engineering and electronics, information technology, telecommunications and wood products, these accounting for around 25 percent of the economy, while agriculture takes the final 5 percent. Membership of the European Union offers Estonia challenges as well as opportunities. Inward investment from the EU is happening but this needs a stable economic and political environment. This means an end to the corruption scandals that have affected virtually every Estonian political party. For tourists, EU membership has already made life easier as visas are no longer required for citizens of EU member states.

Continued in part 9