The Estonian Economic Miracle

Publication Date: August 2007

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Mart Laar

Research Area: Economics

Keywords: WorldwideFreedom; Economic Reform; flat tax; Estonia

Type: Report

Coverage: Estonia

Abstract:

After the collapse of the Soviet Union, Estonia took advantage of a narrow window of opportunity to radically reform its economy, and these reforms have yielded stunning results. Poverty and inequality are decreasing. Estonia has low unemployment and low inflation, and living standards are improving rapidly. The government's budget is not only balanced, but also running a strong surplus.