Estonia: Ethnic Strife, Booming Economy

Unlike some of the other EU candidate countries, economics is not an issue for Estonia.

Just 11 years after its independence, the Baltic state is experiencing an economic boom. Though not enjoying the double-digit growth rates of the late 1990s, the country nevertheless boasted respectable 5.4 percent growth in its gross domestic product this year.

Estonia has done well by redirecting trade away from Russian markets to the EU. Estonia’s open economy is liberal even by EU standards and is well ahead of the other Baltic States -- foreign trade is about twice Latvia’s and Lithuania’s.

Corruption, prejudice head list of concerns

The European Unions' chief concerns seem to be Estonia's continuing sociological problems. For 40 years, a Soviet-style regime had dominated all layers of social and political life. That legacy has left its mark on Estonian society.

When the Soviet Union collapsed, a large number of ethnic Russians remained in Estonia. Some are Russian citizens, others are citizens of Estonia and a large number have no citizenship at all having been stranded by the fall of the Soviet Empire.

The result is an ethinically divided populace, rife with discrimination and prejudice. Many of the non-citizens are barred from some occupations and cannot vote in national elections.

Crime and corruption are also serious problems. Though reform efforts have been undertaken, many in the political elite are still accused of being arrogant and shady.

Security at Estonia’s outside borders remains a problem too. Human and drug traffickers typically have little problem finding avenues through which to do business. There is a brisk business in the heroin drug trade despite efforts by Estonia's border guard to get outside training and modern radar systems.

Natives are restless

Membership would secure a slice of the structural funds and the pro-business government is keen to join the club. But according to the Commission‘s Euro-barometer, public opinion is lower than in any of the other candidate countries.

Only one in four Estonians think they would personally benefit from accession. Many see European integration as a potential threat to Estonian culture and identity. This is primarily due to the country’s historical ties to Russia.