Estonia  

Estonia’s foreign direct investment ranks the country in the top 10 worldwide with a rate equivalent to 13% of GDP, and the country’s export revenues relative to import costs are high, placing it in the top 15. The unemployment rate is relatively low at 5% and Estonian workers have access to very high amounts of physical capital, ranking the country in the top quartile on this latter variable. Estonia’s domestic savings rate reaches just above the global median at 27% of GDP, while household expenditure is relatively weak at only 22% of GDP. Inflation is comparably high at 6.6%, placing Estonia below the global average on this variable. Although default rates remain very low at 0.5% the interest margin is a significant 8.5 percentage points, indicating an uncompetitive banking system that places Estonia amongst the bottom 10, worldwide.

With only six formal start up procedures, Estonia has few barriers to entry for new businesses. The economic value added in services is a high 68% of GDP, placing Estonia in the top 25, reflecting a developed, service-based economy. The large bandwidth available to Estonian internet users, the high number of secure internet servers per person, and the ratio of one computer per two people rank the country in the top 20 on the variables. Also, both ICT and high-tech goods, as a proportion of total manufactured exports, rank the country within the top 20, worldwide, at 14% and 21%, respectively. Additionally, while Estonia’s royalty receipts are above the global mean, expenditure on R&D is low, at 0.7% of GDP.

Estonian citizens enjoy unconstrained freedom to participate in political processes, express their beliefs, and associate with political and civic organisations. Estonia is categorised as a democracy with some political competition and an independent judiciary. There are significant restraints on the power of the executive branch, with checks and balances in place to prevent arbitrary decisions. There is also a high level of competition in elections for the executive and legislative branches of government; however, electoral processes are far from free and open. Furthermore, Estonia is a relatively new democracy, having undergone a fundamental change in the political system within the last 20 years.

Estonia’s primary enrolment rate is at 94% and the ratio of teachers to pupils at this level is extremely favourable with one teacher for every 11 students, placing Estonia amongst the top 10 countries according to this variable. There is also a very even ratio of boys to girls at approximately one to one. High secondary and tertiary enrolment rates place the country at 22nd and 20th, respectively. However, the education level of the labour force is well below global averages and educational spending, despite being in the top third worldwide, is relatively poor compared to other European countries.

High ratios of doctors and beds per capita in Estonian hospitals put the country in the top 25 in both variables. Estonia has a health-adjusted life expectancy of 64 years, only 3% of Estonians are malnourished, and infant mortality rates are low, ranking the country above global averages on all variables. Additionally, a low 18% reported experiencing pain the previous day, placing the country 10th with respect to this variable.* Furthermore, 95% of Estonians have access to improved sanitation facilities, but only two-thirds are satisfied with the quality of their water.* Less than two-thirds are satisfied with their overall health, one of the lowest rates, worldwide.* Similarly, over one-quarter of Estonians consider themselves to have health problems, and only 59% would say they are well rested, placing Estonia in the bottom quintile on both variables.*

Estonia has some security challenges related to refugees and social groups with a history of discrimination, but the country ranks above the global average on both categories. There are also minimal concerns related to human flight and there were no reported deaths due to civil war in 2007. However, homicide rates are slightly below the international average, with almost eight murders per 100,000 capita. The number of people having property stolen and the number assaulted in 2008 are both around the global median and 62% feeling safe walking Estonian streets at night.*

Estonia performs well with respect to rule of law as legislation is universally and equally applied. The quality of regulation is very high, placing Estonia within the top 15 nations, and the efficiency of the Estonian civil service is also within the first quartile worldwide. Whereas objective measures of political participation indicate that elections are fair, only 44% of the population believe this to be the case.* Confidence in the judicial system is also relatively low at 55%.* Contrastingly, nearly four-fifths of Estonians have confidence in the military, a relatively high rate for this variable.* Furthermore, nearly three-quarters think there is widespread corruption in local businesses, and nearly 80% think the same of local government.*

Estonian citizens have unconstrained freedom to practise their religious beliefs, speak freely without fear of government censorship, and travel freely within and out of their own country. However, only 71% are satisfied with their level of freedom, about the worldwide average for this measure.* In addition, Estonia is not a particularly tolerant nation; just over half believe their neighbourhood to be a good place for ethnic minorities to live and less than half feel their area is a good place for immigrants to live, ranking the country in the bottom 15 on both variables.*

Relatively few people said their friends were important, but nine-tenths felt they could rely on their family and friends in times of need.* Only 18% of Estonians said they had volunteered and just a low 36% had helped strangers in the month prior to the survey conducted in 2008.* Rates of donation are even lower, with fewer than one in eight giving to charities.* Estonia is the least religious country, globally, and only 10% are members of a religious institution, placing the country in the bottom quintile on this variable and indicating limited access to religious support networks.* Overall membership in groups is also very low, with very few people affiliated with arts and sports clubs, and only 2% belonging to environmental clubs.

* Data taken from the Gallup World Poll

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