Estonia became independent from the Soviet Union in 1991. Since then, the country has developed in the areas of infrastructure, economy, Digitization and education have undergone an astonishing transformation. It has long since outperformed many other European market economies in these areas. In the areas of digitalization and education, Estonia is even a role model that is attracting interest not only throughout Europe, but worldwide. I visited Estonia for a week in May 2019 to find out more about the country and take a closer look at its development. I was there Participants of Latitude59The first digital society in the world, according to its own statement, is the flagship start-up and tech event.

History and population in Estonia

Estonia was under foreign rule for a long timeGerman knights, Danes, Swedes and Russians ruled the country between the 13th century and the beginning of the 20th century. It was only after the First World War that the Republic of Estonia became an independent state in 1918. This independence was interrupted by Soviet occupation for half a century after the Second World War, until the country became independent again in 1991.

Estonia has a north-facing ferry port in the capital Tallinn and increasing links with Helsinki, which is located directly on the other side of the Gulf of Finland. Estonia sees itself less as part of the Baltic regionbut is oriented more towards Scandinavia.

Estonia has been a member of the EU and NATO since 2004 and a member of the eurozone since 2011. Estonia has a good 1.3 million inhabitants (January 2018). The capital and largest city of Estonia is Tallinn.

In addition to the Estonian majority (69%), there is a large Russian minority (25 percent) in Estonia, which was settled there during the decades of Soviet rule. It has not yet been possible to sufficiently integrate the inhabitants who immigrated during the Soviet era. For example, around half of the Russian-speaking inhabitants of Estonia do not have an Estonian passport. In addition, many do not speak Estonian and live in separate districts.

There is now a growing realization among the younger generation that the Estonian language and integration are necessary to be successful in the country. The older Russian speakers who have not yet taken the step will not do so in the future either: they remain in a parallel world, so to speak.

The Estonian economy has developed rapidly

Estonia is considered a prime example of the transition from a socialist planned economy to a free market economy. Among the Eastern European countries the Baltic States thosewhich in the 1990s

• liberalized and privatized their economic structures most radically,
• dismantled their welfare states the most
• accumulated the lowest public debt.

They managed to do this despite the deep economic crisis at the time. Estonia played a pioneering role in this process. The decisive preparatory steps for a radical neoliberal model were taken during the reign of Prime Minister Mart Laar, who was in office from 1992 to 1994.

The Estonians succeeded after just six years of independence, to reshape the country to such an extentthat the EU criteria for a functioning market economy were met. This meant that accession negotiations with the EU could begin as early as 1997. Accession then took place in 2004 as part of the EU's eastward expansion.

During the global economic and financial crisis of 2008 and 2009, the country experienced a deep slump. Thanks to a solid financial policy and a reduction in public spending and wages, Estonia managed to recover quickly. This enabled Estonia to meet the stability criteria for joining the European Monetary Union as early as 2010, and the euro has been Estonia's national currency since January 1, 2011.

An important prerequisite for economic growth was the Privatization of the Baltic banks to foreign investorsthe creation of a free foreign trade regime and a modern tax system.

Industry in Estonia

The most important industries in Estonia are the extraction of oil shale, the timber, paper and furniture industry and the food industry. Other important sectors include the electrical industry as well as mechanical engineering and vehicle parts manufacturing.

The IT and technology start-up sector has grown rapidly in Estonia in recent years. Four unicorns, i.e. start-ups with a market capitalization of more than one billion euros, have roots in Estonia.

Construction and infrastructure in Estonia

At the beginning of independence, Estonia had many beautiful old buildings, but they were in urgent need of renovation. Almost three decades later, some ruins can still be found in the cityscapes of Tallinn and Tartu. However, most of the buildings have now been extensively renovated and modernized.

At the same time, the large cities, especially Tallinn and Tartu, have a number of modern high-rise buildings, office buildings and hotels. Many of these buildings are with the help of foreign investors for example from Great Britain, Ireland and Israel.

Traffic in Estonia

If you come directly to Estonia, you land at a modern airport in Tallinn. It was opened in 1936 and international air traffic began in 1989. The renovation of the airport building was completed in 2008.

The building is modern and cozy and doesn't feel as sterile as most airports around the world. There are table tennis tables and a piano for free use and play areas for children. Estonians are generally very child-friendly, which can also be seen in other places, such as restaurants.

Tallinn has a modern and well-developed public transportation network. Streetcars and buses run regularly. Use is free for locals, but we paid a total of six euros for five days. The payment system is based on chip cards that are topped up with credit.

Estonia has a rail network on which modern multiple-unit trains run. Here, too, Estonians travel with a chip card, similar to the way they travel within Tallinn, but tickets can also be purchased via the Internet, which contain a QR code that is then scanned by the train attendants. Tickets can also be purchased on the train itself.

Unfortunately, not all of the country is accessible for passenger transportation. However, there is a direct connection to Moscow once a day. However, if you want to travel to Latvia, you still have to change trains at the border.

On both sides of the sea, both the Estonians and the Finns have long been Plans for a tunnel to better connect Finland with the Baltic states and the rest of Europe. At the same time, there are plans for a Rail Baltica. This is a rail link that is to run from Warsaw via Kaunas and Riga to Tallinn - with a connection to Helsinki.

Estonia: Pioneer of digitalization

After this general insight into the Baltic country, the second part of the article focuses on the outstanding features that Estonia has created in the field of digitalization. This applies not only to digitalization in companies, but also to the education system and the digital state as a whole. Click here for part two: Digitalization and education in Estonia: a shining example of the digital transformation of an entire country!

(Cover picture: The skyline of Tallinn; Image: © Patrick Müller / TCI GmbH)