Estonia

Estonia, officially the Republic of Estonia (Estonian: Eesti or Eesti Vabariik), is a country in Northern Europe. Estonia has land borders to the south with Latvia and to the east with Russia. It is separated from Finland in the north by the Gulf of Finland and from Sweden in the west by the Baltic Sea.

Estonia has been a member of the European Union since 1 May 2004 and of NATO since 29 March 2004.

The Estonian people are ethnically related to the Finns. The Estonian language is one of the Finno-Ugric languages and as such, along with its close relative Finnish as well as Hungarian, is one of the few official languages of the European Union that is not of Indo-European origin.

History

Ancient history

Human settlement in Estonia became possible 11,000 to 13,000 years ago, when the ice from the last glacial era melted away. The oldest known settlement in Estonia is the Pulli settlement, which was located on the banks of the river Pärnu, near the town of Sindi, in southern Estonia. According to radiocarbon dating, it was settled around 11,000 years ago, at the beginning of the ninth millennium BC.

Evidence has been found of hunting and fishing communities existing around 6500 BC near the town of Kunda in northern Estonia. Bone and stone artifacts similar to those found at Kunda have been discovered elsewhere in Estonia, as well as in Latvia, northern Lithuania and in southern Finland. The Kunda culture belongs to the middle stone age, or Mesolithic period.

The end of the Bronze Age and the early Iron Age were marked by great cultural changes. The most significant was the transition to farming, which has remained at the core of Estonian economy and culture. From approximately the first to fifth centuries AD, resident farming was widely established, the population grew, and settlement expanded. Cultural influences from the Roman Empire reached Estonia, and this era is therefore also known as the Roman Iron Age.

A more troubled and war-ridden middle Iron Age followed with external dangers coming both from the Baltic tribes, who attacked across the southern land border, and from overseas. Several Scandinavian sagas refer to campaigns against Estonia. Estonian pirates conducted similar raids in the Viking age and sacked and burned the Swedish town of Sigtuna in 1187.

Christianity

By the early thirteenth century, Estonia was divided into eight large counties — Saaremaa, Läänemaa, Rävala, Harju, Viru, Järva, Sakala, Ugandi, and many smaller ones. Annual consultations were held by representatives and constituents of several counties and developments took the direction of establishing a state. Estonia until this time retained a pagan religion centered around a deity called Tharapita.

Estonia was Christianized when the German "Livonian Brothers of the Sword" conquered southern Estonia (German: Livland) as part of the Northern Crusades in the early thirteenth century. At the same time, Denmark attempted to take possession of northern Estonia. Estonia was consolidated under the two forces by 1227. Northern Estonia (German: Estland) remained a possession of Denmark until 1346. Reval (known as Tallinn since 1918) was given its Lübeck Rights in 1248 and joined the Hanseatic League at the end of the thirteenth century. In 1343, the people of northern Estonia and Saaremaa rebelled against German rule in the St. George's Night Uprising, which was put down by 1344. There were unsuccessful Russian invasions in 1481 and 1558. After 1524, during the Protestant Reformation, Estonia converted to Lutheranism.

Sweden and Russia

During the Livonian War in 1561, northern Estonia submitted to Swedish control, while southern Estonia briefly came under the control of Poland in the 1580s. In 1625, mainland Estonia came entirely under Swedish rule. Estonia was administratively divided between the provinces of Estonia in the north and Livonia in southern Estonia and northern Latvia, a division which persisted until the early twentieth century.

In 1631, the Swedish king Gustavus Adolphus forced the nobility to grant the peasantry greater rights, although serfdom was retained. In 1632 a printing press and university were established in the city of Dorpat (known as Tartu since 1918). This period is known in Estonian history as "the Good Old Swedish Time."

Following the Great Northern War, the Swedish empire lost Estonia to Russia (1710 de facto, and 1721 de jure, by the Treaty of Nystad). However, the upper classes and the higher middle class remained primarily Baltic German. The war devastated the population of Estonia, but it recovered quickly. Although the rights of peasants were initially weakened, serfdom was abolished in 1816 in the province of Estonia and in 1818 in Livonia.

Gaining independence

As a result of the abolition of serfdom and the availability of education to the native Estonian-speaking population, an active Estonian nationalist movement started in the nineteenth century. It began on a cultural level, resulting in the establishment of Estonian language literature, theatre and professional music and the formation of the Estonian national identity. Among the leaders of the movement were Johann Voldemar Jannsen, Jakob Hurt and Carl Robert Jakobson. Significant accomplishments were the publication of the national epic, Kalevipoeg, in 1862, and the organization of the first national song festival in 1869.

In response to a period of Russification initiated by the Russian empire in the 1890s, Estonian nationalism took on more political tones, with intellectuals first calling for greater autonomy, and later, complete independence from the Russian empire. Following the Bolshevik takeover of power in Russia after the October Revolution of 1917 and German victories against the Russian army, Estonia declared itself an independent republic on 24 February 1918. After winning the Estonian Liberation War against Soviet Russia and at the same time German Freikorps volunteers (the Treaty of Tartu was signed on 2 February 1920), Estonia maintained its independence for twenty-two years. Initially a parliamentary democracy, the parliament (Riigikogu) was disbanded in 1934, following political unrest caused by the global economic crisis. Subsequently the country was ruled by decree by Konstantin Päts, who became President in 1938, the year parliamentary elections resumed.

Under the USSR

Estonia was occupied by Soviet troops in June 1940, as a consequence of the secret amendment to the August 1939 Molotov-Ribbentrop Pact between the Soviet Union and Nazi Germany. Estonia was formally annexed by the Soviet Union in August 1940 as the Estonian SSR. Many of the country's political and intellectual leaders were killed or deported to remote areas of the USSR by the Soviet authorities during 1940 to 1941. The repressions also included actions taken against thousands of ordinary people. When the German Operation Barbarossa started against the Soviet Union, about 34000 of young Estonian men were forcibly drafted into the Red Army. Less than 30% of them survived the war. Hundreds of political prisoners, whom the retreating Soviets had no time to move were killed. The country was occupied by Germany from 1941 to 1944. Of the many Estonians who joined the German armed forces (including Waffen-SS), the majority did so only in 1944 when the threat of a new invasion of Estonia by Red Army had become imminent and it was clear that Germany would not win the war. Soviet forces reconquered Estonia in the autumn of 1944 after fierce battles in the northeast of the country on the Narva river and on the Tannenberg Line(Sinimäed). In the face of the country being re-occupied by the Red Army, tens of thousands of people chose to either retreat together with the Germans or flee to Finland or Sweden. In 1949, in response to slow progress in forming collective farms, following the doctrine of Terror as prescribed by the Soviet ideology, about 20,000 people were forcibly deported in a few days either to labor camps or Siberia. Within a few following weeks, almost all of the remaining rural households had been collectivised (ibid).

Half of the deported perished; the other half were not allowed to return until the early 1960s (several years after Stalin's death). That and previous repressions in 1940-1941 sparked a guerrilla war against the Soviet authorities in Estonia which was waged into the early 1950s by the so called "forest brothers" (metsavennad) consisting mostly of Estonian veterans of both the German and Finnish armies as well as some civilians.

In addition to the human and material losses suffered due to war, thousands of civilians were killed and tens of thousands of people deported from Estonia by the Soviet authorities until Joseph Stalin's death in 1953. Material damage caused by the world war and the following Soviet rule significantly slowed Estonia's economic growth, resulting in a wide "wealth gap" in comparison with neighboring unoccupied countries such as Finland and Sweden.

Militarization was another aspect of the Soviet regime. Large parts of the country and especially the coastal areas were restricted to anyone but the Soviet military. Most of the northern, northwestern and western sea shore and all of the islands (including Saaremaa and Hiiumaa) were declared "border zones". Estonians not directly living there were restricted from traveling there without a permit and were punished if they did so. A notable closed military installation was the city of Paldiski which was entirely closed to all public access. The city had a support base for the Soviet Baltic Fleet's submarines and several large military bases, including a nuclear submarine training centre complete with a full-scale model of a nuclear submarine with working nuclear reactors. The reactor building passed to Estonian control a year after the Soviet troops left.

Russification was another effect brought about by the Soviet occupation. Hundreds of thousands of Russian-speaking migrants (mostly from the Russian Federation or Ukraine) were relocated to Estonia by the Soviet administration and Communist Party to conduct industrialization and militarization, contributing an increase of about half million to Estonia's population within 45 years of occupation and colonisation. The immigrants stayed on to form part of the population. By 1980, when part of the Moscow Olympic Games were also held in Tallinn (the Olympic Regatta), Russification and state-orchestrated immigration had achieved a level at which it started sparking popular protests.

Return to independence

The United States, United Kingdom and the majority of other western democracies considered the annexation of Estonia by USSR illegal. They retained diplomatic relations with the representatives of the independent Republic of Estonia, never recognized the existence of the Estonian SSR de jure, and never recognized Estonia as a legal constituent part of the Soviet Union. Estonia's return to independence became possible as the Soviet Union ran into economic difficulties as a consequence of the Cold War and began to disintegrate. As the situation evolved, a movement for more Estonian self-governance started. In the initial period of 1987-1989, this was partially for more economic independence, but as the Soviet Union weakened and it became increasingly obvious that nothing short of full independence would do, the country began a course towards self-determination.

In 1989, during the "Singing Revolution", in a landmark demonstration for more independence, called The Baltic Way, a human chain of more than two million people was formed, stretching through Lithuania, Latvia and Estonia. Both Lithuania and Latvia had similar fates of occupation and similar aspirations for regaining independence as Estonia.

Estonia formally declared regained independence on August 20, 1991, during the Soviet military coup attempt in Moscow. The first country to diplomatically recognize Estonia's reclaimed independence was Iceland.

The last Russian troops left on 31 August 1994. Estonia joined NATO on 29 March 2004 and the European Union on 1 May 2004.

Post-independence foreign policy

Since regaining independence, Estonia has pursued a foreign policy of close cooperation with its Western European neighbors. The two most important policy objectives in this regard have been accession into NATO and the European Union, achieved in March and May of 2004 respectively. Estonia's international realignment toward the West has been accompanied by a general deterioration in relations with Russia, most recently demonstrated by the controversy surrounding relocation of the Bronze Soldier WWII memorial in Tallinn.

An important element in Estonia's post-independence reorientation has been closer ties with the Nordic countries, especially Finland and Sweden. Indeed, Estonians consider themselves a Nordic people rather than Balts, based on their linguistic, cultural and historical ties with Sweden, Denmark and particularly Finland. In December 1999 Estonian foreign minister -- and current president since 2006 -- Toomas Hendrik Ilves delivered a speech entitled "Estonia as a Nordic Country" to the Swedish Institute for International Affairs. In 2003, the foreign ministry also hosted an exhibit called "Estonia: Nordic with a Twist". And in 2005, Estonia joined the European Union's Nordic Battle Group. It has also shown continued interest in joining the Nordic Council.

Today, there is extensive economic interdependence between Estonia and some of its Nordic neighbors: three quarters of foreign investment in Estonia originates in the Nordic countries (principally Finland and Sweden), to which Estonia sends 42% of its exports (as compared to 8.8% going to Latvia and 4.7% to Lithuania).

On the other hand, the Estonian political system, its flat rate of income tax, and its non-welfare-state model distinguish it from the other Nordic states, and indeed from many other European countries.

Politics

Estonia is a parliamentary democracy with three branches of power: legislative, executive, and judicial.

The legislative power lies with the unicameral parliament, the Riigikogu or State Assembly, which consists of 101 seats. Members are elected by popular vote to serve four-year terms.

The Government of Estonia or the executive branch is formed by the Prime Minister of Estonia, nominated by the president and approved by the parliament. The government consists of 12 ministers, including the prime minister. The prime minister also has the right to appoint other ministers, whom he or she will assign with a subject to deal with and who will not have a ministry to control, becoming a 'minister without a portfolio'. The prime minister has the right to appoint a maximum of 3 such ministers, as the limit of ministers in one government is 15.

The supreme judicial power is vested in the Supreme Court or Riigikohus, with 19 justices. The Chief Justice is appointed by the parliament for nine years on nomination by the president.

The official Head of State is the President of Estonia, who gives assent to the laws passed by Riigikogu, also having the right of sending them back and proposing new laws. The president, however, does not use these rights very often, having a largely ceremonial role. He or she is elected by Riigikogu, with two-thirds of the votes required. If the candidate does not gain the amount of votes required, the right to elect the president goes over to an electoral body, consisting of the 101 members of Riigikogu and representatives from local councils.

As other spheres, Estonian law-making has been successfully integrated with the Information Age. Estonia has pursued the development of the e-state and e-government. Internet voting is used in elections in Estonia. The first Internet voting took place in the 2005 local elections and the first in a parliamentary election was made available for the 2007 elections, in which 30,275 individuals voted over the Internet. Voters have a chance to invalidate their vote in traditional elections, if they wish to.

Geography

Topography

Estonia lies on the eastern shores of the Baltic Sea immediately across the Gulf of Finland from Finland on the level northwestern part of the rising east European platform between 57.3° and 59.5° N and 21.5° and 28.1° E. Average elevation reaches only 50 metres (164 ft) and the country's highest point is the Suur Munamägi in the southeast at 318 metres (1,043 ft).
Gulf of Finland and Estonia.

Oil shale (or kukersite) and limestone deposits, along with forests which cover 47% of the land, play key economic roles in this generally resource-poor country. Estonia boasts over 1,400 lakes. Most are very small, with the largest, Lake Peipus, (Peipsi in Estonian) being 3555 km² (1372 sq mi). There are many rivers in the country. The largest are the Võhandu (162 km), Pärnu (144 km), and Põltsamaa (135 km). Estonia also boasts numerous bogs, and 3794 kilometers (2,357 mi) of coastline marked by numerous bays, straits, and inlets. The number of islands and islets is estimated at some 1,500. Two are large enough to constitute their own counties: Saaremaa and Hiiumaa..

Climate

Estonia lies in the northern part of the temperate climate zone and in the transition zone between maritime and continental climate. Because Estonia (and all of Northern Europe) is continuously warmed by the Gulf Stream it has a milder climate despite its northern latitude. The Baltic Sea causes differences between the climate of coastal and inland areas.

The average annual temperature in Estonia is 4.5 degrees Celsius. The average temperature in February, the coldest month of the year, is negative 5.2 degrees Celsius. The average temperature in July, which is considered the warmest month of the year, is 17 degrees Celsius.

The climate is also influenced by the Atlantic Ocean, the North-Atlantic Stream and the Icelandic Minimum, which is an area known for the formation of cyclones and where the average air pressure is lower than in neighbouring areas.

Estonia is located in a humid zone in which the amount of precipitation is greater than total evaporation. There are about 160 to 180 rainy days a year, and average precipitation is biggest on the western slopes of the Sakala and Haanja Uplands. Snow cover, which is deepest in the south-eastern part of Estonia, usually lasts from mid-December to late March.

Economy

General situation

As a member of the European Union, Estonia is part of the one of the world's largest and most tightly integrated trade blocs.

In June 1992, Estonia replaced the ruble with its own freely convertible currency, the kroon (EEK). A currency board was created and the new currency was pegged to the German mark at the rate at 8 EEK for 1 DEM. When Germany introduced the euro, the peg was changed to 15.6466 kroon for 1 euro. The Estonian government finalized the design of Estonia's euro coins in late 2004, and is now intending to adopt the euro as the country's currency in 2010, later than planned due to continued high inflation.

In 1994, Estonia became one of the first countries in the world to adopt a flat tax, with a uniform rate of 26% regardless of personal income. In January 2005 the personal income tax rate was reduced to 24%. A subsequent reduction to 23% followed in January 2006. The income tax rate will be decreased by 1% annually to reach 18% by January 2011.

In 1999, Estonia experienced its worst year economically since it regained independence in 1991, largely because of the impact of the August 1998 Russian financial crisis. Estonia joined the WTO in November 1999. With assistance from the European Union, the World Bank and the Nordic Investment Bank, Estonia completed most of its preparations for European Union membership by the end of 2002 and now has one of the strongest economies of the new member states of the European Union, which it joined on 1 May 2004.
The north-west coast of Estonia near Nõva, Lääne.

Since January 1, 2000, companies have not had to pay income tax on re-invested income. However, tax is due on profit distributions (including hidden distributions) at a rate of 22%. Despite the fact that only the moment of taxation was shifted from earning profits to their distribution, leaving the rest of the corporate taxation system mostly unchanged, the current legislation is said to be in violation of one of the fundamental freedoms of the European Union — free movement of capital. Estonia is to remove this hindrance by January 2009 when the temporary derogation expires, though Estonia has an option at that point to institute a very low corporate income tax, either 10%, or even 0%.

The Estonian economy is growing quickly, partly due to a number of Scandinavian companies relocating their routine operations to the country and Russian oil transit using Estonian ports. Estonia has a strong information technology (IT) sector. Its GDP PPP per capita is at $17,802, the highest of the Baltic states, while its unemployment rate was 4.2% in July 2006, one of the lowest in the European Union.

Although the annual GDP growth rate in 2006 amounted again 11.4%, some of the leading financial institutions and rating agencies (Dankse Bank, S&P, IWF) expressed serious concerns about possible overheating syndromes of the booming economy. A number of the main economic indicators (e.g. inflation at the 4.5%, significantly negative trade balance and private credit level) partly support this opinion.

Exports

Estonia exports machinery and equipment (33% of all exports annually), wood and paper (15% of all exports annually), textiles (14% of all exports annually), food products (8% of all exports annually), furniture (7% of all exports annually), and metals and chemical products. Estonia also exports 1.562 billion kilowatt hours of electricity annually.

Estonia's export partners are Finland (26.4%), Sweden (12.9%), Latvia (8.8%), Russia (6.5%), Germany (6.2%), and Lithuania (4.8%).

Imports

Estonia imports machinery and equipment (33.5% of all imports annually), chemical products (11.6% of all imports annually), textiles (10.3% of all imports annually), food products (9.4% of all imports annually), and transportation equipment (8.9% of all imports annually). Estonia imports 200 million kilowatt hours of electricity annually.

Demographics

Linguistically, Estonian is closely related to the Finnish language. Estonians, as an ethnic group, are a Finnic people. Indigenous Estonian-speaking ethnic Estonians constitute nearly 70% of the total population of about 1.3 million people.

First and second generation immigrants from various parts of the former Soviet Union (mainly Russia) comprise most of the remaining 30%. The latter, mostly Russian-speaking ethnic minorities, reside predominantly in the capital city (Tallinn) and the industrial urban areas in northeastern Estonia (Ida-Virumaa county). There is also a small group of Finnish descent, mainly from Ingermanland (Ingria).

A significant part of indigenous Baltic Germans left Estonia during the early 1920s, after land reforms and even dispossessions had taken place. But the majority of Baltic Germans left the country in late 1939, after Nazi Germany and USSR had agreed to assign Estonia into the Soviet 'sphere of influence' in the Molotov-Ribbentrop Pact. Historically, large parts of Estonia’s north-western coast and islands have been populated by an indigenous ethnically Swedish population called "rannarootslased" ("coastal Swedes"). The majority of Estonia's Swedish population fled to Sweden in 1944, escaping the advancing Soviet Army. Only a few hundred Swedes remained.

The country's official language is Estonian, a Finno-Ugric language which is closely related to Finnish. It has been influenced by German, and like Finnish contains many Swedish words. Russian is also widely spoken as a secondary language by thirty- to seventy-year-old ethnic Estonians, because Russian was taught as a compulsory second language during the Soviet era. Many younger Estonian people can usually speak English, having learned it as their first foreign language. Some Russians residing in Estonia do not speak Estonian, but many of those who remained after the collapse of the Soviet Union have begun to learn it[citation needed].

In the southernmost region of the country, some 70,000 people speak Võro, a Baltic-Finnic language closely related to Estonian.