Combining Tradition and Innovation in the Economic Progress of Estonia

Abstract

From a historian’s perspective, the article analyzes the specifics of Estonian economic life in dynamic from the past till present days – from the agrarian to the post-industrial society. Estonia is displayed to take on contemporary challenges with dignity, including crises and their aftermaths. The rational Balts don’t recede to the archaic, despite cherishing their own traditions. Aware of global trends, they move along the path of innovation, thus responding to the core challenge of today – the challenge of modernization. Estonian experience re-emphasizes the importance of two constituents of successful reform: broad public support and the competence of national elites to govern the process.

Highlighted are the factors that have been distinguishing Estonia’s economic progress: mentality, immortal convincement in belonging to the European civilization, devotion to its values, willingness to bring them to life and to protect them. Since the beginning of its restored statehood, the aim was undoubtedly set to join the EU and NATO. The dialectic of progress was determined by the connection of admission requirements and reforms conducted to comply with them.

It is concluded that a nation’s successful socioeconomic development requires the same as does an individual’s full-fledged development and fulfilment: the values of intellectual freedom, proficiency and openness to change. The chosen path of liberal democracy with social-oriented innovation-based market economy has brought Estonia from the margins of the Russian empire to the circle of developed European states. Estonian experience is valuable to those post-Soviet countries that aspire to the same. It was the successful combination of tradition and innovation that became the groundwork to the success of the nation that, despite all complications and crises of the modern world, had significantly improved its own life and, helping others, had earned the international community’s respect.