BE OPEN!BE OPEN!

Story of Estonian miracle

MART LAAR

THIS COUNTRY IS CALLED ESTONIA

On the border of East and WestOn the border of East and West

20.08.199120.08.1991

The reality in 1992The reality in 1992

Estonia 1992Estonia 1992

INFLATION – 1000%

ECONOMY – FALLING 30%

UNEMPLOYMENT PROGNOSES – 30%

DEPENDENCE FROM RUSSIA – 92% FROM TRADE

FOOD RATIONED

HIGH INEQUALITY AND POVERTY

WE MUST AIM HIGH!WE MUST AIM HIGH!

THE MODEL OF SUCCESS THE MODEL OF SUCCESS

MONETARY REFORM THE RULE OF LAW LIBERALIZATION PRIVATIZATION THE TAX REVOLUTION – FLAT

RATE PROPORTIONAL INCOME TAX

NO AID, MORE TRADE!NO AID, MORE TRADE!

BE OPEN! BE OPEN!

ABOLISH CUSTOM TARIFFS FREE TRADE AGREEMENTS

WITH NORDIC COUNTRIES FREE TRADE BETWEEN THE

BALTIC COUNTRIES FREE TRADE TREATY WITH EU

Estonia todayEstonia today

Index of economic freedomIndex of economic freedom

ESTONIA 2007ESTONIA 2007

FAST GROWTH – 11% IN 2006 FAST GROWTH OF EXPORT LOW UNEMPLOYMENT BALANCED BUDGET FOREIGN INVESTMENTS

GDP PER CAPITA IN PPPGDP PER CAPITA IN PPP

0

20

40

60

80

100

120

140

1992 1997 2002 2005 2008

RumeniaCroatia

UngariPortugal

GreeceEstonia

Finland

HIGHER SOCIAL SECURITYHIGHER SOCIAL SECURITY

0

5

10

15

20

25

30

35

40

45

50

1992 2007

GINI Poverty

Just do it!Just do it!