Estonia has prospered under market reforms | Realities of Socialism

Harrison Griffiths, IEA Communications Officer, and Peter Boettke, University Professor of Economics and Philosophy at George Mason University, delve into the profound impact of socialism on Estonia and its subsequent resurgence through free-market reforms.

Boettke reflects on socialism’s aspirations in the Soviet Union, revealing the stark contrast between democratic dreams and the harsh realities of Stalinism. Estonia struggled under Soviet rule compared to Finland. This led to resistance movements, including environmental protests and the inspiring Singing Revolution.

Ultimately, the Molotov-Ribbentrop Pact’s illegality was established, leading to independence movements. Gorbachev’s attempts to exert control through economic demands fuelled resistance and eventually culminated in the dissolution of the Soviet Union.

Estonia’s post-Soviet journey is characterised by shock therapy and market-oriented reforms. The country’s adoption of a flat tax, cutting-edge advancements in e-government, and a steadfast commitment to economic and personal freedom propel Estonia into an extraordinary recovery, illustrating the transformative power of free market ideas. Join the conversation and unravel the dynamic history of Estonia’s encounter with socialism and its triumphant return to prosperity.

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