Story of Estonian miracle MART LAAR BE OPEN! Story of Estonian miracle MART LAAR

THIS COUNTRY IS CALLED ESTONIA

On the border of East and West

20.08.1991

The reality in 1992

Estonia 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!

THE TAX REVOLUTION – FLAT RATE PROPORTIONAL INCOME TAX THE MODEL OF SUCCESS MONETARY REFORM THE RULE OF LAW LIBERALIZATION PRIVATIZATION THE TAX REVOLUTION – FLAT RATE PROPORTIONAL INCOME TAX Lot of analysts have asked, what is behind this success, what is the secret of “Estonian way”. Answer to this question is quite simple. First - if You start with reforms, then move fast and be decisive, don’t waste time. At the same time reforms must be simple and passed in all areas of life, starting from the politics - constitution, democratic institutions, governments - and then moving to economy. Don’t be afraid - if You are doing right thing - everebody turns against You. But if You have done right thing, You will come back. So don’t waste Your time. Allways look for real owners, launch privatization openly and fight down corruption. Don’t support enterprises, who are not interested to support themselves. Be open, create good conditions for business and foreign investments. But always think with Your own head, because some advice, what You can get is not very reasonable. Because You must turn Your disadvantages to advantages, take use of Your backwardness. This idea was behind German miracle and growth of Japan.

NO AID, MORE TRADE!

ABOLISH CUSTOM TARIFFS FREE TRADE AGREEMENTS WITH NORDIC COUNTRIES BE OPEN! ABOLISH CUSTOM TARIFFS FREE TRADE AGREEMENTS WITH NORDIC COUNTRIES FREE TRADE BETWEEN THE BALTIC COUNTRIES FREE TRADE TREATY WITH EU Lot of analysts have asked, what is behind this success, what is the secret of “Estonian way”. Answer to this question is quite simple. First - if You start with reforms, then move fast and be decisive, don’t waste time. At the same time reforms must be simple and passed in all areas of life, starting from the politics - constitution, democratic institutions, governments - and then moving to economy. Don’t be afraid - if You are doing right thing - everebody turns against You. But if You have done right thing, You will come back. So don’t waste Your time. Allways look for real owners, launch privatization openly and fight down corruption. Don’t support enterprises, who are not interested to support themselves. Be open, create good conditions for business and foreign investments. But always think with Your own head, because some advice, what You can get is not very reasonable. Because You must turn Your disadvantages to advantages, take use of Your backwardness. This idea was behind German miracle and growth of Japan.

Estonia today

Index of economic freedom

FAST GROWTH – 11% IN 2006 FAST GROWTH OF EXPORT LOW UNEMPLOYMENT ESTONIA 2007 FAST GROWTH – 11% IN 2006 FAST GROWTH OF EXPORT LOW UNEMPLOYMENT BALANCED BUDGET FOREIGN INVESTMENTS

GDP PER CAPITA IN PPP

HIGHER SOCIAL SECURITY

Just do it!