September 17, 2006

Estonia and the free market

I've heard and read and seen(on dw-tv) about Estonia and its economic miracle, a large part delivered through its shrewd taxation system, the flat tax and corporation tax. Below are a series of links that discuss the baltic tiger.
Flat tax champion who ignored the economists
The good side is that ambitious people in Estonia have prospered markedly during the past nine years, the down side is that the weak, the less ambitious, those that plan their lives stupidly or impractically (from the standpoint of making money) have fallen by the wayside. The social net in Estonia has large holes in it, and you can't avoid seeing that many poor people live among the outwardly prosperous majority of Estonians.

Many Finns expected Estonia to build a Social-Democratic style welfare state, and were surprised and to some degree miffed that Estonia, which they wanted to regard as a little brother, chose to model itself after America rather than after Finland. The good side of this is that Helsinki and Tallinn, close as they are, have very different atmospheres and are thus quite fascinating for people who know one but not the other, or who are familiar with both.

What is the status of Finnish/Estonian relations ? Are they warm or cold ?
Can Estonia and Finland span gulf?
Finland keeping its eye on the new-look Estonia
Pioneer of the 'flat tax' taught the East to thrive
Lessons of smaller states
Freedom Flourishes in Former Soviet Satellite Estonia
Flat tax: ideas and interest

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