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| The contributions to the study of ] made by the Estonian reforms are mainly three: ], ] and ] reorientation. | The contributions to the study of ] made by the Estonian reforms are mainly three: ], ] and ] reorientation. | ||
| ⚫ | ===De-facto lustration=== | ||
| ⚫ | |||
| In retrospect, the changing of ] was the most important factor that permitted the implementation of the other reforms in the ] transition cases. It is now widely accepted in the study of the ] transitions that the more the former ] of the previous regime participates in the post-communist polity, the worst the country seems to perform economically, socially and politically. While the ] passed a controversial ] in 1992, the Estonians instead followed a de-facto lustration that was both less controversial and more effective, mostly through administrative reforms that essentially excluded the communist ] from key government posts. | In retrospect, the changing of ] was the most important factor that permitted the implementation of the other reforms in the ] transition cases. It is now widely accepted in the study of the ] transitions that the more the former ] of the previous regime participates in the post-communist polity, the worst the country seems to perform economically, socially and politically. While the ] passed a controversial ] in 1992, the Estonians instead followed a de-facto lustration that was both less controversial and more effective, mostly through administrative reforms that essentially excluded the communist ] from key government posts. | ||
| ⚫ | ===Economic reforms=== | ||
| ⚫ | |||
| Estonia benefited from hindsight, in that its ] came two years after the transitions in the other former ] of ]. Estonia was able to implement many of their lessons while avoiding pitfalls. Three innovations to the study of economic transitions stand out: | Estonia benefited from hindsight, in that its ] came two years after the transitions in the other former ] of ]. Estonia was able to implement many of their lessons while avoiding pitfalls. Three innovations to the study of economic transitions stand out: | ||
| *Hybrid ]. By combining the ] and ] models on the one hand, with the Czech ] program on the other, Estonia implemented a hybrid privatization system which was perceived as both just and efficient while avoiding the pitfalls of the earlier models. Laar’s director of privatization was ], a Swede-Estonian and former manager of the ] pop group ]. | |||
| *]. Estonia under Laar was the first country to implement a ], which is considered successful and was emulated by numerous other countries, namely ], ], ], ], ], ] and others. ], for example, dramatically increased ] revenues while slashing ]. Laar admits the only book on economics he had read before becoming prime minister at the age of 32 was '']'' by ]. | |||
| *Banking reform. Laar implemented harsh banking reform by encouraging the ] of banks suspected of having been taken over by the ]. Though the ] at the time criticized this policy (as they did the Estonian policy of leaving the ] zone in 1992), it was proven successful as Estonia did not suffer a ] later as other transition countries did (even the ]). After 2000, the ] reformers applied this same policy. | |||
| ===] reorientation=== | |||
| Estonia also became a case study in escaping ] and destiny. From near total dependence on Russia for ], by 2004, trade with that country was less than 4% of the total. Estonia since 2004 is a full member of both the ] and ]. | Estonia also became a case study in escaping ] and destiny. From near total dependence on Russia for ], by 2004, trade with that country was less than 4% of the total. Estonia since 2004 is a full member of both the ] and ]. | ||
Revision as of 04:12, 10 September 2006
Mart Laar (born April 22 1960 in Viljandi) was the Prime Minister of Estonia from 1992 to 1994 and from 1999 to 2002.
Laar is a member of the Pro Patria Union. In addition to being a politician, Laar has written several books on Estonian and Russian history. Laar was also a history teacher in Tallinn, as well as the past president of Council of Historians of the Foundation of the Estonia Inheritance, the Society for the Preservation of Estonia History and the Society of University Students of Estonian. Laar graduated form Tartu University in 1983, and received his masters degree from the same university in 1995.
On 21 October 1992 Laar was installed by the Riigikogu as Prime Minister, after being appointed to the post by then President Lennart Meri. In an 1994 no-confidence vote, parliament removed the historian from office amid opposition accusations of lying to the people, following murky deals involving the disappearance of millions of rubles meant to go back to Russia after the kroon national currency was launched.
Five years later, in 1999, he returned to the post, with his main policy goals being to pull the economy out of a slump and lead the country toward the European Union. He remained in the post until he stepped down in 2002.
Many credit Laar for leading Estonia through lightning economic reforms that won Western praise and ultimately laid the groundwork for rapid economic growth and acceptance to European Union entry talks. It is also believed that Laar's economic reforms led to the Baltic Tiger period starting for Estonia after 2000. But the reforms were tough, and Laar was hurt by scandal concerning the ruble deal and by a multimillion-dollar Israeli arms purchase.
Political and Economic Reforms
Laar’s reforms are referred to as the most thorough in the region and are often used as a model for other transitions. The contributions to the study of transitions made by the Estonian reforms are mainly three: lustration, economic reforms and geopolitical reorientation.
De-facto lustration
In retrospect, the changing of elites was the most important factor that permitted the implementation of the other reforms in the post-communist transition cases. It is now widely accepted in the study of the post-communist transitions that the more the former nomenklatura of the previous regime participates in the post-communist polity, the worst the country seems to perform economically, socially and politically. While the Czechs passed a controversial Law on Lustration in 1992, the Estonians instead followed a de-facto lustration that was both less controversial and more effective, mostly through administrative reforms that essentially excluded the communist nomenklatura from key government posts.
Economic reforms
Estonia benefited from hindsight, in that its transition came two years after the transitions in the other former Soviet satellites of Central Europe. Estonia was able to implement many of their lessons while avoiding pitfalls. Three innovations to the study of economic transitions stand out:
- Hybrid privatization. By combining the Hungarian and Treuhand models on the one hand, with the Czech voucher privatization program on the other, Estonia implemented a hybrid privatization system which was perceived as both just and efficient while avoiding the pitfalls of the earlier models. Laar’s director of privatization was Jaan Manitski, a Swede-Estonian and former manager of the Swedish pop group ABBA.
- Flat tax. Estonia under Laar was the first country to implement a flat tax, which is considered successful and was emulated by numerous other countries, namely Latvia, Lithuania, Russia, Slovakia, Ukraine, Romania and others. Russia, for example, dramatically increased tax collection revenues while slashing tax rates. Laar admits the only book on economics he had read before becoming prime minister at the age of 32 was Free to Choose by Milton Friedman.
- Banking reform. Laar implemented harsh banking reform by encouraging the bankruptcy of banks suspected of having been taken over by the mafia. Though the International Monetary Fund at the time criticized this policy (as they did the Estonian policy of leaving the ruble zone in 1992), it was proven successful as Estonia did not suffer a banking crisis later as other transition countries did (even the Czech Republic). After 2000, the Yugoslavian reformers applied this same policy.
Geopolitical reorientation
Estonia also became a case study in escaping geography and destiny. From near total dependence on Russia for trade, by 2004, trade with that country was less than 4% of the total. Estonia since 2004 is a full member of both the European Union and NATO.
The results of the radical reforms have been recognized by Transparency International (which ranked Estonia the least corrupt country in the post-communist region), the Heritage Foundation / Wall Street Journal (whose index qualified Estonia as the most economically free in all of Europe), and the United Nations Development Program (whose Human Development Index measured Estonia’s rapid rise in such quality-of-life parameters as education, health, income and environment).
Recent Activities
Laar has been involved in assisting and counseling other democratic activists and reformers in the region and beyond, including in Yugoslavia (before 2000), Moldova, Ukraine (before 2004), Mexico (after its own transition in 2000) and Cuba (the Miami-Dade city council in Florida enacted a “Mart Laar Day” in 2003). Together with Václav Havel, Filip Dimitrov, Árpád Göncz, Petr Pithart, Vytautas Landsbergis, Patricio Aylwin and other transition leaders, he participates in the International Committee for Democracy in Cuba.
Laar was the 2006 recipient of the Cato Institute's Milton Friedman Prize for Advancing Liberty which is awarded biannually to "an individual who has made a significant contribution to advancing human freedom."
Among his books are War in the Woods: Estonia's Struggle for Survival, 1944-1956. It is about all those who refused to live in the "workers paradise" and who continued to fight in the woods against the Soviet authority. ISBN 0-929590-09-0
References
| Preceded byTiit Vähi | Prime Minister of Estonia 1992 - 1994 |
Succeeded byAndres Tarand |
| Preceded byMart Siimann | Prime Minister of Estonia 1999 - 2002 |
Succeeded bySiim Kallas |