Estonian unemployment is still climbing

There were fewer jobs and more job seekers in Estonia in the 4th quarter of 2009. According to the Estonian Labor Force Survey conducted by Statistics Estonia, the country’s unemployment rate increased to 15.5% and the number of unemployed persons rose to 107,000. Both figures are record highs for the period since 1991.

Estonia’s unemployment rate remains the 3rd-highest in Europe, trailing only Latvia (22.8%) and Spain (19.5%). The 4th quarter unemployment rate across the 27-member European Union was 9.6%. Unemployment in the United States at the end of the 4th quarter was 10.0%.

As discussed in this earlier post, the job picture for young people aged 15 to 24 is particularly bad. Moreover, according to the Estonian Labor Force Survey, the number of children suffering from the effects of their parents’ unemployment is also increasing:

[M]ore and more children are in [a] difficult economic situation. The number of children (less than 18 years of age) in … jobless households was 37,000 in the 4th quarter of 2009, which is over two times more than a year ago.

The survey also asked respondents how well they were coping, and the results are sadly unsurprising: fewer than half of all respondents rated their coping as “satisfactory,” with 16% of the population (164,000 people) reporting “great difficulties” in coping.

Let’s hope things begin to turn around soon.

Kristina Šmigun-Vähi captures Estonia’s first medal of the 2010 Olympics

Kristina Šmigun-Vähi

Estonia yesterday captured its first medal of the 2010 Olympics. Kristina Šmigun-Vähi, winner of two gold medals at the 2006 Winter Olympics in Turin, claimed the silver medal in the women’s 10km freestyle cross-country event. She finished just 6.6 seconds behind gold medal winner Charlotte Kalla of Sweden.

Šmigun-Vähi’s achievement capped a significant comeback for the 32-year-old skier. She had “retired” from cross-country skiing after the 2006-2007 season in order to have a baby. She missed the past two seasons and began training for the Vancouver games only recently.

In other events Estonia has been far less successful. The country has to date participated in five events (men’s and women’s cross country skiing, men’s and women’s biathlon, and pairs figure skating), but Šmigun-Vähi can claim the country’s only competitive performance so far. Estonia will also compete in alpine skiing, ladies’ figure skating, ice dancing, and snowboarding.

The table below presents the top three finishers and all Estonian finishers in each medal event in which Estonia has competed. Estonian athletes are shown in blue.


Cross-Country Skiing – Ladies’ 10 km F (15 Feb)

78 competitors

1 (gold) Charlotte Kalla (Sweden) 24:58
2 (silver) Kristina Smigun-Vähi 25:05
3 (bronze) Marit Bjoergen (Norway) 25:14
58 Tatjana Mannima 28:13
Cross-Country Skiing – Men’s 15 km F (15 Feb)

95 competitors

1 (gold) Dario Cologna (Switzerland) 33:36
2 (silver) Pietro Piller Cottrer (Italy) 34:01
3 (bronze) Lukas Bauer (Czech Republic) 34:12
51 Aivar Rehemaa 36:13
67 Karel Tammjarv 37:38
Figure Skating – Pairs Short Program (14 Feb)

20 competitors

1 (gold) China
2 (silver) China
3 (bronze) Germany
19 Maria Sergejeva & Ilja Glebov
Biathlon – Men’s 10 km Sprint (14 Feb)

87 competitors

1 (gold) Vincent Jay (France)
2 (silver) Emil Hegle Svendsen (Norway)
3 (bronze) Jakov Fak (Croatia)
31 Indrek Tobreluts
48 Kauri Koiv
62 Roland Lessing
Biathlon – Women’s 7.5 km Sprint (13 Feb)

88 competitors

1 (gold) Anastazia Kuzmina (Slovakia)
2 (silver) Magdalena Neuner (Germany)
3 (bronze) Marie Dorin (France)
55 Eveli Saue
64 Kadri Lehtla
83 Kristel Viigipuu
84 Sirli Hanni
Š

Estonian Olympic team gets off to a mixed start

Andrus Veerpalu

The twenty-first Winter Olympic Games in Vancouver are in only their second full day, and Estonia’s athletes have not even begun to compete, but away from the ice and the snow the Estonian team has already experienced both a victory and a defeat.

The victory came in the Parade of Nations on Friday, as Estonia caught the eyes of viewers around the world with its smartly designed outfits. An ongoing “Top Opening Ceremony Outfit” poll on the Huffington Post ranks Estonia 6th, behind the Czech Republic, Azerbaijan, Lithuania, Latvia (go Balts!), and Bermuda. The Estonian outfits were designed by Estonian fashion house Monton. Click on the image below for a better look.

So much for the victory. The defeat came today with the suspension of Estonian cross-country skier Kaspar Kokk, whose blood test revealed hemoglobin levels above the permissible limit. He will be forced to miss the opening cross-country skiing event on Monday but, subject to further testing, will be eligible to rejoin the team on Wednesday.

Estonia looks smart in the Parade of Nations (12 Feb 10, Vancouver)

Kokk’s teammates will begin competing for medals when the cross-country skiing events kick off on Monday. Estonia is a flat country accustomed to long, snowy winters, so it’s no surprise that Estonians are avid cross-country skiers. For Estonians it’s not just a sport; often, it’s a mode of transportation.

Since the country’s re-independence in 1991, all six of its Winter Olympics medals have been won in cross-country skiing events. The team hopes to continue its success this year. Andrus Veerpalu (above) won two medals in the 2002 Winter Olympics in Salt Lake City (the 15km gold and the 50km silver), and one in the 2006 Turin games (15km gold). He’ll be competing in both events this year as well and, although he just celebrated his 39th birthday, he’s considered to be a strong contender at both distances.

Read more about the outlook for Estonia’s Winter Olympic team here.

Remembering the Tartu Peace Treaty

Estonian War of Independence Victory Column, Tallinn

Much of the global media’s attention will no doubt focus on a rather confused groundhog in Punxsutawney, Pennsylvania, but let’s pause for a moment to remember that tomorrow, February 2nd, marks 90 years since the signing of the treaty, between Russia and Estonia, that ended the Estonian War of Independence and, for the first time in modern history, legally established the Republic of Estonia as a sovereign state.

Estonia had been a province of Imperial Russia since 1710, and had been subject to some sort of foreign hegemony since the 13th century. Then, in the late 1910s, amidst the turmoil of World War I and the Russian Revolution, chaos ensued: foreign armies (Bolshevik, White Russian, German, even British) came and went, and political institutions were suddenly more vulnerable to change than they had been for centuries.

Estonia formed a provisional government and, on 24 February 1918, declared a fragile independence which lasted for only about 24 hours: German troops occupied Tallinn the very next day. But after the First World War ended on 11 November, the Germans left and Estonia revived its provisional government to challenge the Tallinn Soviet that had been established by the Bolsheviks. The Red Army invaded Estonia less than two weeks later, igniting the Estonian War of Independence.

The war attracted a diverse lot of participants. Estonian efforts were augmented by White Russian soldiers, by Finnish, Swedish, and Danish volunteers, and by a British naval presence; Estonia also fought a bloody battle on its southern border against a Baltic German military force. There was a great deal of battlefield realignment, and front lines moved dramatically as each side’s fortunes rose and fell: at one point, Soviet forces came within 35 kilometers of Tallinn; at another, Estonian forces conquered Pskov and got quite close to St Petersburg (then called Petrograd). By the time it was over, the 14-month war had claimed 3,588 Estonian lives and left 13,775 Estonians injured.

Signatures on the Tartu Peace Treaty

Estonian and Soviet Russian negotiators met in Tartu, Estonia’s second-largest city, to negotiate peace. In the resulting Tartu Peace Treaty, signed on February 2nd, 1920, Soviet Russia recognized Estonian independence and forever renounced claims on Estonian territory. The Soviets also agreed to pay Estonia restitution in the amount of 15 million gold rubles.

Tartu was an apt choice for the peace negotiations, because it was the site of one of the decisive battles, two centuries earlier, of the Great Northern War, which resulted in Russia gaining the Estonian territory from Sweden. In 1707, Russia implemented a brutal scorched-earth policy which resulted in the destruction of every major building in Tartu.

Read more about the Estonian War of Independence and the Tartu Peace Treaty here and here.

The last new Estonian kroon coin?

In the same week that Estonia’s ministry of finance announced that the country had completed its application to join the eurozone, the Bank of Estonia released the newest — and perhaps the last — Estonian kroon coin. The silver coin was issued to commemorate the Vancouver Winter Olympics and carries a nominal denomination of 10 kroons.

The eye-catching design is meant to depict “a dynamic stylised image of racing cross-country skiers.” While you may or may not be able to discern the skiers in the rather abstract image, what you will see on the coin is the word “krooni” for perhaps the last time. And its probable status as the last kroon-denominated coin to be minted by Estonia should greatly enhance its collectible value.

Interested in picking one up for your collection? Notwithstanding its modest face value, it’s made of real silver, so it will cost you 350 kroons. Information on how to order the coin is here.

The Estonian kroon is officially an endangered species

Estonia’s determined push to adopt the euro as its legal currency has reached its final stage as the government today approved a convergence program that it believes will pave the way for euro adoption next January. Barring any unforeseen surprises, Estonians will exchange their kroons for euros in less than a year.

The Finance Ministry’s report concludes that Estonia has met the requirements for adopting the euro. Known as the Maastricht criteria, these include a cap on government budget deficits of 3 percent of GDP, maximum government debt of 60 percent of output, and inflation no more than 1.5 percent above the average of the three European Union countries with the lowest inflation rates.

Estonia is not alone in its optimism. Two European political heavyweights — German foreign minister Guido Westerwelle and EU commissioner Olli Rehn — have recently voiced support for Estonia’s euro bid.

Coming soon to Estonian wallets

So what are the pros and cons for Estonia of joining the euro club? Here’s a concise summary of the arguments on both sides of the debate.

Benefits

  1. Estonia becomes a much more attractive target for foreign investment, as foreign investors won’t need to worry that their investments will lose value due to currency fluctuations
  2. The country is insulated from the unpredictable and potentially devastating forces of foreign currency speculation
  3. Estonian households and businesses are able to borrow money, free of foreign exchange risk, from any bank in the eurozone; the increased competition could considerably reduce Estonians’ borrowing costs
  4. Estonians reap the psychological benefit of full membership in every European club

Costs

  1. Estonia loses control over its own monetary policy; decisions about interest rates and the amount of money in circulation will be made in Frankfurt rather than Tallinn
  2. The process of qualifying for the euro may have made Estonia’s recession deeper by restricting government spending just when it was most needed
  3. Estonians must endure the loss of a big source of national pride, the kroon

Estonia’s application will be voted upon by the European Commission on June 18th. If it is approved, Estonia will, on January 1, 2011, become the 17th country to adopt the euro as its official currency. And it will be time to wave goodbye to the kroon.

CORRECTION: An earlier post asserted that the euro could be adopted by Estonia as early as June 2010. This is of course the earliest possible approval date; as noted above, the soonest adoption date is January 1, 2011. Estonia on the Map regrets the error.

Estonia launches a global movement

The hottest new Estonian export is not a product or a service. It is the deceptively simple idea that, if you make it fun, and create a sufficiently groovy vibe around it, you can mobilize huge numbers of people to clean up massive amounts of illegally-dumped garbage — all in one day. The concept, perhaps better described as a movement, is called Let’s Do It!

Estonia first “did it” almost two years ago, effectively demonstrating the concept on the 3rd of May, 2008. The country mobilized 50,000 volunteers to clean up 10,000 tons of garbage: trash that had been dumped illegally in forests and meadows, along roadsides and riverbeds, all over the country.

It took a lot of planning. For months beforehand, volunteers had crisscrossed the country on foot with GPS-enabled cell phones to map the illegally-dumped garbage. Then they created an effective marketing buzz around the project, getting politicians and celebrities involved, and succeeded in achieving something quite remarkable: they made garbage collection cool.

Let's Do It! volunteers demonstrate an uncanny enthusiasm for their work

Now word has spread. A conference held in Tallinn last weekend attracted eight countries: Slovenia, Portugal, Romania, India, Lithuania, Latvia, Estonia and Finland. The movement has put up a website. And they’ve attracted the notice of media outlets as far afield as France, India, and Singapore.

So pick up some trash. You’ll be cool if you do.