Estonia has been nicknamed ‘tomorrowland’ or ‘e-stonia’ thanks to its innovative digital development plans. Faced with the struggle of adapting economically after the fall of the Soviet Union, Estonian leaders saw the fledgling internet as an opportunity for a small country like Estonia to make a mark, and thus put considerable resources into getting Estonia online.
While on independence in 1990 many houses didn’t even have telephones, by the late 1990s all of Estonia’s schools were on the internet. By the mid-2000s, the country’s government was virtually all online. Estonian citizens vote, do taxes, bank, and receive school and university reports through an online system known as X-road. Estonian students are taught programming when they start school at the age of 7.
Estonia’s X-road system has also allowed the country to pioneer a ‘borderless economy’. The country now offers ‘e-residency’, meaning that foreigners may log into the system and partake of Estonian services such as banking. Estonia is not a tax haven (e-residents must pay all relevant taxes) but has low business taxes and liberal technology laws, allowing for driverless cars to test freely on its roads.
The result of Estonia’s e-residency program is that Estonia has become a hub for startups (most famously Skype), dubbed the ‘Silicon Valley of Europe’. The country has developed rapidly following independence, and now has one of the highest economic growth rates in the Eurozone.
During the Second World War, Estonia – along with Latvia and Lithuania – became part of the Soviet Union, beginning a particularly unsparing period of repression. In one instance of brutality, the collectivisation of agriculture in 1949 meant that an estimated 80,000 Estonian kulaks (or well-off peasants) were deported to Siberia.
The liberalisation of the Soviet Union under Mikhail Gorbachev allowed an opposition movement to Soviet rule to develop in the late 1980s. Huge protests occurred in Estonia, Latvia and Lithuania, dubbed the ‘singing revolution’ after an outbreak of spontaneous singing at the Tallinn Song Festival Grounds. Estonia’s independence was formally granted in August 1991.
For a more in-depth look at the history of Estonia, check out our previous article on the topic: History of the Baltic States.