Suchergebnisse

The transition from Communism in Eastern Europe was based on the reconstruction of moral and institutional frameworks. Society's basic rules had been transformed beyond recognition by the Communist regimes' attempts to create a New Man, which had generated corruption, indifference and scepticism amongst the region's citizens. The reinstatement of respect for human rights and religious freedoms, and the recreation of functional, trustworthy state structures were necessary for these countries. The battles against ingrained corruption, bureaucratic indolence and reckless spending have shaped the new Eastern European states, with a clear influence on everything from the parties they elect to power to their responses to the economic crisis.

Following the collapse of the USSR in 1991, Estonia regained independence but inherited a heavy economic legacy of poverty and underdevelopment. In spite of the disastrous situation, radical (occasionally unpopular) economic reforms were rapidly undertaken to speed the transition to a market economy in the pursuit of economic stability. This article analyses the main features of the Estonian economy's development encompassing monetary reforms, opening its markets to foreign investors and the introduction of a fresh economic legislation. Decisive and rapid political choices coupled with the establishment of democratically accountable institutions have made this transition a resounding success.