ESTONIAN HUMAN DEVELOPMENT REPORT 1998 Foreword This Human Development Report is the lat- conditions, social and political activity has est in the series of reports begun by the lessened. Even such an important stimulus United Nations Development Programme in for development as education, including 1990. Estonia has been participating in this further education, is tending to tear society worldwide program since 1995. apart. It is becoming the rule that whoever The previous Reports have added to our has reached a certain level of success, can compendium of knowledge and have been manage even greater challenges. At the well received on an international level. As a same time, the opportunities for those lag- natural continuation of the previous ging behind to reduce the gap and improve reports, the present Report also dissects their lives are fading. issues, which are of vital importance to all As a small nation, we must be take care of us - regarding the mechanism for social that Estonias development is as widely cohesion, the way to include all members based as possible. Therefore, the upcoming of society in our everyday life and our elections should not develop into a cam- future. In this process, the Report does not paign that merely brings to the fore, or just observe Estonian society as an entity pushes to the rear, particular political group- unto itself, struggling with its problems, but ings. Estonia needs an open discussion in an open manner and in association with about how to build a more balanced soci- the world around us. ety. This Report will provide assistance in The Report shows that for Estonia, in its obtaining an analysis of the true situation. transition process, the worst is indeed behind us, but we still stand face to face with many problems, the resolution of which requires internal fortitude. Estonians can be characterized, on the one hand, as having a high learning activity level, a developed media consumption, successful internationalization in its various forms, and the ability and skill to be able to utilize new opportunities. In developing these features we could raise the value of our social capi- tal, which in turn encourages long-term Mart Siimann economic growth. Prime Minister On the other hand, differences between of the Republic of Estonia the generations and social groups have deepened. The tail of society has grown too long and straggly. Many people have not managed to adapt to market economy Tallinn, November 15, 1998 Acknowledgements This is the fourth national Human global Human Development Reports. He Development Report published by UNDP- provided the core conceptual framework Estonia in cooperation with the Estonian for the notion of human development and Academy of Sciences. As in previous years, the ways it can be measured. this report is the product of a team of During the course of publishing nation- Estonian writers and researchers, and al Human Development Reports in Estonia, UNDP is much indebted to the contribu- UNDP has had the opportunity to work tions of each and everyone involved. closely with social and economic Special gratitude is extended to Mr. Erik researchers and research institutions. We Terk, Editor-in-Chief of this years Report, have been impressed by the quality, level Mr. Georg Poslawski, the Reports produc- and dynamism of ongoing research and tion manager, and to Ms. Tiia Raudma, who debate. The annual publication of the coordinated the translation and editing of Estonian Human Development Report is a the English-language version. Special way to disseminate a part of this wealth of thanks go to Mr. Linnar Viik, who has not knowledge and research to a wider public, only contributed as author but has also both within and outside Estonia. coordinated the project on behalf of UNDP in cooperation with Mr. Robert Juhkam. The concept of Human Development, which was first introduced in the global Human Development Report published by UNDP in 1990, means quite simply that human well-being and progress in a nation cannot be measured by economic growth alone. Economic growth is a means, not an end, to the improvement of peoples lives. Other factors such as access to education and the opportunity to lead a long and Petra Lantz-de Bernardis UNDP Resident Representative healthy life are important. UNDP is proud that the winner of the 1998 Nobel Prize for Economics, Dr. Amartya Sen, has been a close collaborator in the preparation of Tallinn, November 20, 1998 General information about Estonia Legal name: Constitution, adopted by referendum: conventional long form Republic of Estonia June 28, 1992. conventional short form Estonia State system: local long form Eesti Vabariik The Constitution established the principles of the rule of local short form Eesti law. It recognises the principle of separate and balanced Area: powers, the independence of the courts, and guarantees 45,227 sq km. of fundamental human rights and liberties according to Location: universally recognised principles and norms. Estonia is a Estonia lies on the eastern shores of the Baltic Sea. democratic parliamentary republic wherein the supreme Estonia is situated on the level north-western part of the power is vested in the people. The people exercise the East European platform, on which there are only slight supreme power, through citizens who have the right to variations in elevation. The elevation in south-eastern vote by electing the Riigikogu State Assembly (parlia- and eastern Estonia is higher than in western Estonia. ment) and by participating in referendums. The Riigikogu The highest point (Suur Munamägi) is 318 m above sea is comprised of one hundred and one members. level. Estonia has over 1,500 islands and more than 1,400 Executive power rests with the Government. The head of lakes. State of Estonia is the President of the Republic. Population: Capital: 1,453,844 (01.01.1998) Tallinn (population 415,299, 01.01.1998) Ethnic divisions: Administrative divisions: Estonian 65,0%, Russian 28,2%, Ukrainian 2,6%, Estonia is divided into 15 counties, 206 rural munici- Belarussian 1,5%, Finnish 0,9%, other 1,8% (01.01.1998) palities, and 47 towns. Religious denominations: Currency: Lutheran, Orthodox, Baptist, and others. National currency is the Estonian kroon (1 kroon = 100 Languages: sent). The kroon was issued on June 20, 1992 and is Estonian (official), Russian, and others. pegged to the German mark at the rate 1 DEM = 8 EEK. State independence regained: Member of United Nations: August 20, 1991. September 17, 1991. Independence Day: Member of the Council of Europe: February 24. May, 1993. Contributors to the Estonian Human Development Report 1998 Authors Aili Aarelaid-Tart Juhan Sillaste (Chapters 2.2., 4.7.) (Chapter 4.6.) Raul Eamets Annika Tallo (Chapters 3.3., 4.5.) (Chapter 1.2.) Mati Heidmets Indrek Tart (Chapter 2.4.) (Chapters 2.2., 5.2.) Jelena Helemäe Erik Terk (Chapter 1.4.) (Introduction, Aado Keskpaik Chapters 1.2., 4.2.) (Introduction) Peeter Vihalemm Aksel Kirch (Chapters 1.5., 4.1.) (Chapter 4.3.) Linnar Viik Anneli Külaots (Chapters 5.1., 5.3., (Chapter 4.2.) 5.4.) Marju Lauristin Raivo Vilu (Introduction, (Chapters 5.1., 5.4.) Chapters 1.5., 4.1.) Rein Vöörmann Krista Loogma (Chapter 1.4.) (Chapter 1.3.) Anu Narusk (Chapter 1.1.) Iris Pettai (Chapter 3.4.) Editor-in-Chief Tiia Püss Erik Terk (Chapters 3.2., 4.4.) Viive Ruus (Chapters 2.1., 2.3., 4.3.) Editors Rein Ruutsoo Mati Heidmets (Chapters 2.1., 2.3., Krista Loogma 4.3.) Tiia Raudma Ellu Saar Katrin Toomel (Chapter 1.4.) Linnar Viik There is no copyright attached to this publication. It may be reproduced in whole or in part without prior permission from the United Nations Development Programme. However, the source should be acknowledged. The views expressed herein are those of the authors of the book and do not necessarily reflect the views of the United Nations or the United Nations Development Programme. The Estonian Human Development Report 1995, 1996, 1997 and 1998 are also available electronically through the Internet World Wide Web which may be accessed at http://www.ciesin.ee/undp/nhdr.html Contents page page INTRODUCTION: 3.4. Adaptation as an Indicator WHY INTEGRATION? ................................8 of Integration ....................................64 Chapter 1: Chapter 4: WILL A COOPERATION-BASED SOCIETY INTEGRATING INTO EUROPE AND THE DEVELOP IN ESTONIA? ..........................12 WORLD.....................................................68 1.1. The Individual in a Social 4.1. Social Space as a Factor of Environment: various aspects European Integration .......................68 of the treatment and measurement 4.2. Integration With the European of integration ....................................12 Union: Some External and 1.2. The Generations in Estonias Internal Implications ........................73 Transition Period ..............................14 4.3. Attitudes of Estonias Population 1.3. Is the Education System Integrating Towards Estonias Accession to or Disintegrating Society?.................17 the European Union.........................76 1.4. Adult Education and Integration .....24 4.4. Social Protection in Estonia 1.5. Media Use and Social Changes in Compared to the EU ........................82 Estonia...............................................31 4.5. Estonian Labor Market Potential and Labor Market Policy in the Chapter 2: Context of the European Union......88 CIVIC SOCIETY, STATEHOOD AND 4.6. Estonian Local Governments LEGAL CULTURE......................................38 in Europe