ESTONIA

Estonia (Estonian: Eesti), officially the Republic of Estonia (Estonian: Eesti Vabariik), is a state in the Baltic region of Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia (343 km), and to the east by Lake Peipus and Russia (338.6 km). Across the Baltic Sea lies Sweden in the west and Finland in the north. The territory of Estonia covers 45,227 km2 (17,462 sq mi), and is influenced by a temperate seasonal climate. The Estonians are a Finnic people, and the official language, Estonian, is a Finno-Ugric language closely related to Finnish and distantly to Hungarian.

Estonia is a democratic parliamentary republic divided into 15 counties. The capital and largest city is Tallinn. With a population of 1.29 million, it is one of the least-populous members of the European Union, Eurozone and the North Atlantic Treaty Organization. Estonia has the highest gross domestic product per person among the former Soviet republics. It is listed as a "high-income economy" by the World Bank, is identified as an "advanced economy" by the International Monetary Fund, and is a member of the Organisation for Economic Co-operation and Development. The United Nations classifies Estonia as a developed country with a very high Human Development Index, and the country ranks highly in measures of press freedom (3rd in the World in 2012), economic freedom, political freedom and education. Estonia is often described as one of the most wired countries in Europe

GEOGRAPHY

Estonia's land border with Latvia runs 267 kilometers; the Russian border runs 290 kilometers. From 1920 to 1945, Estonia's border with Russia, set by the 1920 Tartu Peace Treaty, extended beyond the Narva River in the northeast and beyond the town of Pechory (Petseri) in the southeast. This territory, amounting to some 2,300 square kilometers (888 sq mi), was incorporated into Russia by Stalin at the end of World War II. For this reason the borders between Estonia and Russia are not still defined today.

Estonia lies on the eastern shores of the Baltic Sea immediately across the Gulf of Finland from Finland on the level northwestern part of the rising East European platform between 57.3° and 59.5° N and 21.5° and 28.1° E. Average elevation reaches only 50 meters (164 ft) and the country's highest point is the Suur Munamägi in the southeast at 318 meters (1,043 ft). There is 3,794 kilometers (2,357 mi) of coastline marked by numerous bays, straits, and inlets. The number of islands and islets is estimated at some 1,500. Two of them are large enough to constitute separate counties: Saaremaa and Hiiumaa. A small, recent cluster of meteorite craters, the largest of which is called Kaali is found on Saaremaa, Estonia.

Estonia is situated in the northern part of the temperate climate zone and in the transition zone between maritime and continental climate. Estonia has four seasons of near-equal length. Average temperatures range from 16.3 °C (61.3 °F) on the Baltic islands to 18.1 °C (64.6 °F) inland in July, the warmest month, and from −3.5 °C (25.7 °F) on the Baltic islands to −7.6 °C (18.3 °F) inland in February, the coldest month. The average annual temperature in Estonia is 5.2 °C (41.4 °F). The average precipitation in 1961–1990 ranged from 535 to 727 mm (21.1 to 28.6 in) per year.

Snow cover, which is deepest in the south-eastern part of Estonia, usually lasts from mid-December to late March. Estonia has over 1,400 lakes. Most are very small, with the largest, Lake Peipus, (Peipsi in Estonian) being 3,555 km2 (1,373 sq mi). There are many rivers in the country. The longest of them are Võhandu (162 km/101 mi), Pärnu (144 km/89 mi), and Põltsamaa (135 km/84 mi). Estonia has numerous fens and bogs.

Phytogeographically, Estonia is shared between the Central European and Eastern European provinces of the Circumboreal Region within the Boreal Kingdom. According to the WWF, the territory of Estonia belongs to the ecoregion of Sarmatic mixed forests.

MILITARY

The military of Estonia is based upon the Estonian Defence Forces (Estonian: Kaitsevägi), which is the name of the unified armed forces of the republic with Maavägi (Army), Merevägi (Navy), Õhuvägi (Air Force) and a paramilitary national guard organization Kaitseliit (Defence League). The Estonian National Defence Policy aim is to guarantee the preservation of the independence and sovereignty of the state, the integrity of its land, territorial waters, airspace and its constitutional order. Current strategic goals are to defend the country's interests, develop the armed forces for interoperability with other NATO and EU member forces, and participation in NATO missions.

The current national military service (Estonian: ajateenistus) is compulsory for men between 18 and 28, and conscripts serve eight-month to eleven-month tours of duty depending on the army branch they serve in. Estonia has retained conscription unlike Latvia and Lithuania and has no plan to transition to a professional army. In 2008, annual military spending reached 1.85% of GDP, or 5 billion kroons, and was expected to continue to increase until 2010, when a 2.0% level was anticipated.

Estonia co-operates with Latvia and Lithuania in several trilateral Baltic defence co-operation initiatives, including Baltic Battalion (BALTBAT), Baltic Naval Squadron (BALTRON), Baltic Air Surveillance Network (BALTNET) and joint military educational institutions such as the Baltic Defence College in Tartu. Future co-operation will include sharing of national infrastructures for training purposes and specialisation of training areas (BALTTRAIN) and collective formation of battalion-sized contingents for use in the NATO rapid-response force. In January 2011 the Baltic states were invited to join NORDEFCO, the defence framework of the Nordic countries.

As of January 2008, the Estonian military had almost 300 troops stationed in foreign countries as part of various international peacekeeping forces, including 35 Defence League troops stationed in Kosovo; 120 Ground Forces soldiers in the NATO-led ISAF force in Afghanistan; 80 soldiers stationed as a part of MNF in Iraq; and 2 Estonian officers in Bosnia-Herzegovina and 2 Estonian military agents in Israeli occupied Golan Heights.

The Estonian Defence Forces have also previously had military missions in Croatia from March until October 1995, in Lebanon from December 1996 until June 1997 and in Macedonia from May until December 2003. Estonia participates in the Nordic Battlegroup and has announced readiness to send soldiers also to Sudan to Darfur if necessary, creating the very first African peacekeeping mission for the armed forces of Estonia.

The Ministry of Defence and the Defence Forces have been working on a cyberwarfare and defence formation for some years now. In 2007, a military doctrine of an e-military of Estonia was officially introduced as the country was under massive cyberattacks in 2007. The proposed aim of the e-military is to secure the vital infrastructure and e-infrastructure of Estonia. The main cyber warfare facility is the Computer Emergency Response Team of Estonia (CERT), founded in 2006. The organization operates on security issues in local networks.

On 25 June 2007, Estonian president Toomas Hendrik Ilves met with the President of the US, George W. Bush. Among the topics discussed were the attacks on Estonian e-infrastructure. The attacks triggered a number of military organisations around the world to reconsider the importance of network security to modern military doctrine. On 14 June 2007, defence ministers of NATO members held a meeting in Brussels, issuing a joint communiqué promising immediate action. First public results were estimated to arrive by autumn 2007.

As to the placement of a NATO Cooperative Cyber Defence Centre of Excellence (CCDCOE), Bush announced his support of Estonia as this centre's location. In the aftermath of the 2007 cyberattacks, plans to combine network defence with Estonian military doctrine have been nicknamed as the Tiger's Defence, in reference to Tiigrihüpe. The CCDCOE started its operations in November 2008.

ECONOMY

As a member of the European Union, Estonia is considered a high-income economy by the World Bank. The country is ranked 16th in the 2012 Index of Economic Freedom, with the freest economy in Eastern Europe and the former Soviet Union. Because of its rapid growth, Estonia has often been described as a Baltic Tiger. Beginning 1 January 2011, Estonia adopted the euro and became the 17th eurozone member state.

According to Eurostat newsrelease published at 21 October 2011, Estonia has the lowest ratio of government debt to GDP among EU countries as 6.7% at the end of 2010. The world media has lately started to describe Estonia as a Nordic country, emphasizing the economic, political and cultural differences between Estonia and its less successful Baltic neighbors.

A balanced budget, almost non-existent public debt, flat-rate income tax, free trade regime, competitive commercial banking sector, innovative e-Services and even mobile-based services are all hallmarks of Estonia's market economy.

Estonia is producing ca 75% of its consumed electricity. Over 85% of it generated with locally mined oil shale. Alternative energy sources such as wood, peat, and biomass make up approximately 9% of primary energy production. Renewable wind energy part was ca 6% of total consumption in 2009. Estonia imports needed petroleum products from western Europe and Russia. Oil shale energy, telecommunications, textiles, chemical products, banking, services, food and fishing, timber, shipbuilding, electronics, and transportation are key sectors of the economy. The ice-free port of Muuga, near Tallinn, is a modern facility featuring good transshipment capability, a high-capacity grain elevator, chill/frozen storage, and brand-new oil tanker off-loading capabilities. The railroad serves as a conduit between the West, Russia, and other points to the East.

Estonia today is mainly influenced by developments in Finland, Sweden and Germany, its three largest trade partners. The government recently increased its spending on innovation by a considerable amount. The prime minister of Estonian Reform Party has aimed to raise Estonian GDP per capita to one of the EU's highest by 2022.

Because of the global economic recession that began in 2007, the GDP of Estonia decreased by 1.4% in the 2nd quarter of 2008, over 3% in the 3rd quarter of 2008, and over 9% in the 4th quarter of 2008. The Estonian government made a supplementary negative budget, which was passed by Riigikogu. The revenue of the budget was decreased for 2008 by EEK 6.1 billion and the expenditure by EEK 3.2 billion. In 2010, the economic situation stabilized and started a growth based on strong exports. In the fourth quarter of 2010, Estonian industrial output increased by 23% compared to the year before.

According to Eurostat data, Estonian PPS GDP per capita stood at 67% of the EU average in 2008. In March 2011, the average monthly gross salary in Estonia was 843€

However, there are vast disparities in GDP between different areas of Estonia; currently, over half of the country's GDP is created in Tallinn, the capital and largest city. In 2008, the GDP per capita of Tallinn stood at 172% of the Estonian average, which makes the per capital GDP of Tallinn as high as 115% of the European Union average, exceeding the average levels of other counties.

The unemployment rate is around 11.7%, which is above the EU average, while real GDP growth as of 2011 was 8.0%, five times the euro-zone average. As of 2012, Estonia remains the only euro member with a budget surplus, and with a national debt of only 6%, it is one of the least indebted countries in Europe.

INDUSTRY

Food, construction, and electronic industries are currently among the most important branches of Estonia's industry. In 2007, the construction industry employed more than 80,000 people, around 12% of the entire country's workforce. Another important industrial sector is the machinery and chemical industry, which is mainly located in Ida-Viru County and around Tallinn.

The oil shale based mining industry, which is also concentrated in East-Estonia, produces around 90% of the entire country's electricity. The extensive oil shale usage however has also caused severe damage to the environment. Although the amount of pollutants emitted to the air have been falling since the 1980s, the air is still polluted with sulfur dioxide from the mining industry that the Soviet Union rapidly developed in the early 1950s. In some areas the coastal seawater is polluted, mainly around the Sillamäe industrial complex.

Estonia is a dependent country in the terms of energy and energy production. In recent years many local and foreign companies have been investing in renewable energy sources. The importance of wind power has been increasing steadily in Estonia and currently the total amount of energy production from wind is nearly 60 MW while at the same time roughly 399 MW worth of projects are currently being developed and more than 2800 MW worth of projects are being proposed in the Lake Peipus area and the coastal areas of Hiiumaa.

Currently, there are plans to renovate some older units of the Narva Power Plants, establish new power stations, and provide higher efficiency in oil shale based energy production. Estonia liberalised 35% of its electricity market in April 2010. The electricity market as whole will be liberalised by 2013.

Together with Lithuania, Poland, and Latvia, the country is considering to participate in the Visaginas nuclear power plant in Lithuania to replace the Ignalina. However, due to the slow pace of the project, Estonia does not rule out building its own nuclear reactor. Another consideration is doing a joint project with Finland because the two electricity grids are connected. The country is considering to apply nuclear power for its oil shale production.

Estonia has a strong information technology sector, partly owing to the Tiigrihüpe project undertaken in mid-1990s, and has been mentioned as the most "wired" and advanced country in Europe in the terms of e-Government of Estonia.

Skype was written by Estonia-based developers Ahti Heinla, Priit Kasesalu, and Jaan Tallinn, who had also originally developed Kazaa.

ECONOMY

Estonia has had a market economy since the end of 1990s and one of the highest per capita income levels in Eastern Europe. Proximity to the Scandinavian markets, location between the East and West, competitive cost structure and high-skill labour force have been the major Estonian comparative advantages in the beginning of the 2000s (decade). Tallinn as the largest city has emerged as a financial centre and the Tallinn Stock Exchange joined recently with the OMX system. The current government has pursued tight fiscal policies, resulting in balanced budgets and low public debt.

In 2007, however, a large current account deficit and rising inflation put pressure on Estonia's currency, which was pegged to the euro, highlighting the need for growth in export-generating industries. Estonia exports mainly machinery and equipment, wood and paper, textiles, food products, furniture, and metals and chemical products. Estonia also exports 1.562 billion kilowatt hours of electricity annually. At the same time Estonia imports machinery and equipment, chemical products, textiles, food products and transportation equipment. Estonia imports 200 million kilowatt hours of electricity annually.

Between 2007 and 2013, Estonia receives 53.3 billion kroons (3.4 billion euros) from various European Union Structural Funds as direct supports by creating the largest foreign investments into Estonia ever. Majority of the European Union financial aid will be invested into to the following fields: energy economies, entrepreneurship, administrative capability, education, information society, environment protection, regional and local development, research and development activities, healthcare and welfare, transportation and labour market

TRANSPORT

Estonia has been an important transit centre since the medieval period. The country's favorable geographical location, along with its developing infrastructure, offers good opportunities for all transport and logistics related activities. Rail transport dominates the cargo sector, carrying 70% of all goods, both domestic and international.

The road transport sector dominates passenger transport; almost 90% of all passengers travel by road. The reconstruction of the Tallinn–Tartu motorway has gained national attention as it connects two of the largest cities in the country. The motorway reconstruction (2+2 route) is part of the current Government Coalition programme. Also the proposed permanent connection to Saaremaa Island is in the national infrastructure building programme. The costs of the projects have been estimated in billions of Euros, which have also gained a lot of media attention and caused public debates over the feasibility.

Five major cargo ports offer easy navigational access, deep waters, and good ice conditions. The Old City Harbour of Tallinn is the largest passenger port, and one of the biggest and busiest passenger harbours in the Baltic region. It served a record 8.48 million passengers in 2011. There are 12 airports and one heliport in Estonia, of which the Lennart Meri Tallinn Airport is the largest airport, providing services to a number of international carriers flying to 23 destinations.

DEMOGRAPHICS

Before World War II, ethnic Estonians constituted 88% of the population, with national minorities constituting the remaining 12%. The largest minority groups in 1934 were Russians, Germans, Swedes, Latvians, Jews, Poles, Finns and Ingrians. The share of Baltic Germans had fallen from 5.3% (~46,700) in 1881 to 1.3% (16,346) in 1934.

Between 1945 and 1989, the share of ethnic Estonians in the population resident within the currently defined boundaries of Estonia dropped to 61%, caused primarily by the Soviet programme promoting mass immigration of urban industrial workers from Russia, Ukraine, and Belarus, as well as by wartime emigration and Joseph Stalin's mass deportations and executions. By 1989, minorities constituted more than one-third of the population, as the number of non-Estonians had grown almost fivefold.

At the end of the 1980s, Estonians perceived their demographic change as a national catastrophe. This was a result of the migration policies essential to the Soviet Nationalisation Programme aiming to russify Estonia – forceful administrative and military immigration of non-Estonians from the USSR coupled with the mass deportations of Estonians to the USSR. During the purges up to 110,000 Estonians were killed or deported. In the decade following the reconstitution of independence, large-scale emigration by ethnic Russians and the removal of the Russian military bases in 1994 caused the proportion of ethnic Estonians in Estonia to increase from 61% to 69% in 2006.

Modern Estonia is a fairly ethnically heterogeneous country, but this heterogeneity is not a feature of much of the country as the non-Estonian population is concentrated in two of Estonia's counties. Thirteen of Estonia's 15 counties are over 80% ethnic Estonian, the most homogeneous being Hiiumaa, where Estonians account for 98.4%of the population. In the counties of Harju (including the capital city, Tallinn) and Ida-Viru, however, ethnic Estonians make up 60% and 20% of the population, respectively. Russians make up 25.6% of the total population but account for 36% of the population in Harju county and 70% of the population in Ida-Viru county.

The law on the Cultural Autonomy for National Minorities was passed in 1925 – the first in Europe. Cultural autonomies could be granted to minorities numbering more than 3,000 people with longstanding ties to the Republic of Estonia. Before the Soviet occupation, the Germans and Jewish minorities managed to elect a cultural council. The Law on Cultural Autonomy for National Minorities was reinstated in 1993. Historically, large parts of Estonia's northwestern coast and islands have been populated by indigenous ethnically Rannarootslased (Coastal Swedes).

The majority of Estonia's Swedish population of 3,800 fled to Sweden or were deported in 1944, escaping the advancing Red Army. In recent years the numbers of Coastal Swedes has risen again, numbering in 2008 almost 500 people, owing to the property reforms in the beginning of 1990s. In 2005, the Ingrian Finnish minority in Estonia elected a cultural council and was granted cultural autonomy. The Estonian Swedish minority similarly received cultural autonomy in 2007.

EDUCATION and SCIENCE

The history of formal education in Estonia dates back to the 13th and 14th centuries when the first monastic and cathedral schools were founded. The first primer in the Estonian language was published in 1575. The oldest university is the University of Tartu, established by the Swedish king Gustav II Adolf in 1632. In 1919, university courses were first taught in Estonian language.

Today's education in Estonia is divided into general, vocational, and hobby. The education system is based on four levels: pre-school, basic, secondary, and higher education. A wide network of schools and supporting educational institutions have been established. The Estonian education system consists of state, municipal, public, and private institutions. There are currently 589 schools in Estonia.

According to the Programme for International Student Assessment, the performance levels of gymnasium-age pupils in Estonia is among the highest in the world: as of 2010, the country was ranked 13th in the quality of its education system, well above the OECD average. Additionally, around 89% of Estonian adults aged 25–64 have earned the equivalent of a high-school degree, one of the highest rates in the industrialized world.

Academic higher education in Estonia is divided into three levels: bachelor's, master's, and doctoral studies. In some specialties (basic medical studies, veterinary, pharmacy, dentistry, architect-engineer, and a classroom teacher programme) the bachelor's and master's levels are integrated into one unit. Estonian public universities have significantly more autonomy than applied higher education institutions.

In addition to organizing the academic life of the university, universities can create new curricula, establish admission terms and conditions, approve the budget, approve the development plan, elect the rector, and make restricted decisions in matters concerning assets. Estonia has a moderate number of public and private universities. The largest public universities are the University of Tartu, Tallinn University of Technology, Tallinn University, Estonian University of Life Sciences, Estonian Academy of Arts; the largest private university is Estonian Business School.

The Estonian Academy of Sciences is the national academy of science. The strongest public non-profit research institute that carries out fundamental and applied research is the National Institute of Chemical Physics and Biophysics (NICPB; Estonian KBFI). The first computer centres were established in late 1950s in Tartu and Tallinn. Estonian specialists contributed in the development of software engineering standards for ministries of the Soviet Union during the 1980s. Estonia spends around 1.44% of its GDP on Research and Development, compared to an EU average of around 2%.