Tuesday, March 19, 2013

Post-Independence Day interview




                              Fixing Estonian Food Bank Manager Piet Boerefijn's apron strap


The following is an interview I gave to the newspaper Pealinn (The Capital City). It appeared on March 11, 2013:

In his Independence Day speech, President Toomas-Hendrik Ilves said that for her 100th birthday Estonia should be fixed up.  How much can a State be fixed up in five years?

I don’t know what he meant by „fixing up“.  He mentioned that EU’s support funds should be used primarily for the purpose of creating something permanent.  OK, I agree.  As a citizen I want to see Estonia remain on the world map and life here to get better.  The President did not make any concrete suggestions, but to me it is clear that our language and culture have to endure.  Presently, that poses a challenge to us.

Why do people in Estonia feel so insecure?

The politics in Estonia have caused people to feel insecure and change is needed.  The policies of the past 30 years which got their start in the United States during President Reagan’s administration are no longer feasible. It was the liberal economic policies that led to the crisis in 2008 and now it is necessary to clean up the mess they created.

I am lucky in that I am not young anymore and do not have to worry about my future and I do not have to look for a job in the labor market.  There have been times when unemployment was a big problem - also in the United States - but the economic crisis has never been as long and as steep, except during the Great Depression, as it is now.  It will take some time to recover.  It is political decisions that determine a country’s economic structure and people’s well-being, and decisions are being made to correct the situation in Europe. 

Is there truth to the government’s claim that Estonia’s economy is recovering and that it is admired even by rich EU countries?

Ansip loves to quote statistics – how much GDP has grown and so on.  At the same time, he does not break down the numbers to explain what it means, who is on the receiving end, and so on.  Details are important.  Everybody knows that the devil is in the details. When you move away from the big picture and look at the details, you begin to ask why in a growing economy we have over 40 000 children who do not get enough to eat every day, why inequality is growing?  The economy could indeed be growing, but the beneficiaries could be only one small part – the wealthier part – not the ones who are simply managing to get by.

Our problem is also that a large part of our economy is owned by foreign interests.  That is worrisome.  Allegedly in recent years about 350 million euros have exited Estonia as foreign investors’ profit.

As an example of what is happening, permit me to cite a case in southern Estonia.  My younger sister restored our great-grandfather’s farm in Karksi-Nuia, located near the Latvian border.  Couple years ago a Swede had bought there a farm.  When I asked my sister a year later how farming goes for the Swede, she replied that he interested only in the forest on that land. What is going to happen when our people no longer own the land and the businesses?  It would mean that the policies in the country would be influenced by foreigners.

Can foreign investors really influence Estonia’s policies?

Yes.  That is the reality.  I have good friends among the foreign investors here and I talk with them.  It cannot be said that they are blood-sucking capitalists as the Marxists loved to say.  No, they are nice people with whom one can get along and discuss issues. But my sense is that our own power structure is not interested in bringing about change.  Here is where greed emerges.  It is in their interest to increase their own wealth and that, as a result, could endanger the country’s sovereignty.

Quite evidently many people feel that those in power are first and foremost interested in their own well-being and not to give aid to those who need it.

I wrote the parliamentarians and told them that we cannot continue this way, that the liberal economic policies are destroying the nation.  I spoke with Hans H. Luik (media magnate in Estonia) about this and he said to me, „ Ilvi, you are against the free flow of capital.  You are a Socialist!“  In fact, I believe in a market economy, but it has to be regulated.

By the way, Estonia is not the only country where such questions come up.  During the last elections in the US, I saw and heard how people simply hated each other.  I visited my good friend who is a Republican.  She is a lovely person, but absolutely against changing the extant liberal taxation policies by which the wealthy pay a smaller tax than the ordinary working people.  She is a beneficiary of that tax structure and understandably she does not support making changes.  She fails to see the large picture in which changes in tax laws would benefit the country’s economy as a whole.

Would inequality be reduced by taxation policies in our country?  Can taxing of dividends or progressive taxation bring beneficial results?

We need to make changes.  The current policies make us poorer.  A progressive tax need not be cast in iron so that it remains the same for all time.  Nothing in this world is forever.  No, tax laws have to be changed and adjusted as needed in order for society to be balanced and sustainable.  The current tax system is not sustainable.  For some reason, the President did not touch this topic in his speech.  Our very serious problem in addition to the 40 000 hungry children is the large number of our people leaving the country.  He did not mention that either in his speech.  Instead, he spoke of a metaphorical Eiffel tower: „ Let us bring to our nation’s 100th anniversary a metaphorical tower which shines and can be seen afar“ was one sentence.  Some sentences later, he said, „Everything that is good and dear need not be grand and seen from afar.“  That lacks logic. I would agree with the latter sentence.  Already, when living in the United States, I thought that Estonia is so small that as a State it has to possess quality – that her educational and health care systems have to be of such quality that others admire and wonder how such a lovely country was achieved.  If one takes a look at foreign media, it contains praise for us, but in the area of IT development.  The latter is not the State’s business. 

Big countries have also praised us for our small national debt.  How does the small debt help people’s well-being?

Indeed, we have a small national debt, but we are poor and children go hungry. However, private indebtedness is large.  I remember when the political leaders encouraged people to take loans.  Siim Kallas even told us, „That’s the way to live.“  The old proverb, „Loans and debts make worry and frets“  was ignored.  One should quote that proverb every now and then.  Banks do not give loans out of human kindness.  Their ads are friendly and show smiling children, and men embracing their wives – it’s all very nice.  In reality, banks have to make a profit and that should not be forgotten.

Is Estonia not too small for creating something great?

We have some very talented people and we could build a nice country, but we have the wrong leaders.

What are the values and objectives that must remain in Estonia?

It is very clear to me that they are the language and culture.  That is our challenge, because our language could easily disappear.  I don’t mean in five years.  But in a 50 year perspective it is conceivable, because pressures to use English are strong.  Look around Tallinn – how many of the signs are purely in Estonian?  There are some, of course.  I walk around town and every now and then notice that an English language sign has appeared.

At the same time, there is pressure to use Russian – at least in Tallinn.  However, I believe that the attractions from the West have a greater potential to supersede our native language.

I lived for many years abroad and Estonian was my mother-tongue.  Abroad, the pressures and charms of a foreign tongue do their work, especially if you do not use your mother-tongue every day.  There is an apropos saying, „Use it or lose it.“  It is true that if you do not use a language, it disappears.  Here in Estonia we must use Estonian every day.

What other dangers besides loss of own language threaten us?

My view of Estonian life somewhat differs from that shared by many other Estonians.  Bowing to the golden calf, as someone commented very adroitly, is a very dominant feature in our society.  I would, in fact, like to see in the next five years – well, it’s not going to disappear – less bowing to the golden calf.  Greed – it destroys people.
















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